German economist and head of the European Stability Mechanism Klaus Regling noted that “time is running out for Greece to reach an agreement with its lenders and there will be no further funds for Athens without it,” during an interview with German newspaper Bild. “There is little time left,” Regling said. “That’s why we’re working day and night for an agreement. Without an agreement with the creditors, Greece will not get any new loans. Then there’s a threat of insolvency. There are a lot of risks contained in that,” he added. “Even missing a payment to the IMF would be dangerous. That would have an effect on other lenders like us. On the other hand, the rescue fund can only extend loans when reforms are implemented. That is also the case now and that’s the only way Greece will be able to restore its economy’s fiscal health,” he said. The Greek government stated on Monday that Greece cannot honor its debt obligations without financial aid. Several senior government officials noted that the country had no way of paying a loan installment to IMF that is due next week.
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