Greece warns it is set to default on debt repayment loans

Interior minister says Athens simply cannot satisfy IMF deadline next month unless it works out a deal with eurozone creditors

Greece has threatened to default on a1.6bn (1.14bn) of debt repayment due on international bailout loans next month, claiming it does not have the funds to satisfy creditors at the same time as paying wages and pensions.

The Greek interior minister, Nikos Voutsis, a long-standing ally of the prime minister, Alexis Tsipras, insisted the country was near to financial collapse. In an interview with Greek television station Mega TV he said Athens needed to strike a deal with its European partners within the next couple of weeks or it would default on repayments to the International Monetary Fund that form part of its a240bn rescue package.