IMF Warns No Leeway on Payment as Merkel Urges Greece to Bow

International Monetary Fund chief Christine Lagarde said Greece won’t be given a grace period if it fails to make a payment at the end of the month as Chancellor Angela Merkel said there’s still time to reach a deal on aid.

Lagarde, whose policies were labeled “criminal” last week by Prime Minister Alexis Tsipras, said that Greece will immediately be considered in default unless it pays about about 1.5 billion euros ($1.7 billion) due to the fund on June 30.

“It will be in default — it will be in arrears vis-a-vis the IMF, yes, on July 1,” Lagarde said at a press conference in Luxembourg where euro-area finance minister meet on Thursday to discuss the deadlock over Greece. “I hope it’s not the case, I really do.”