Greek debt default avoided after €200m payment to IMF

Fears that Greece would run out of funds this week and miss a a2bn public sector pay and pensions bill alongside the IMF payment prove unfounded

Greece gained some breathing space in its battle to stay solvent on Wednesday after it met the deadline for a a200m (149m) debt payment and the European Central Bank extended its lifeline to the country's banking system.

The International Monetary Fund confirmed it had received the repayment, allowing the debt-stricken country's rescue package to remain in place until next week when another a750m is due to the Washington-based organisation.