Greek PM lets fly at IMF in unprecedented outburst

Two men walk under a graffiti on a billboard by street artist Cacao Rocks in Athens. Photo / AP

Greek Prime Minister Alexis Tsipras escalated his defiance towards the country's official creditors, with a pointed attack on the International Monetary Fund, accusing the institution of "financial asphyxiation".

In a firebrand speech to his Parliament, Tsipras said the IMF bore "criminal responsibility" for his country's cash crisis.

"The fixation on cuts ... is most likely part of a political plan ... to humiliate an entire people that has suffered in the past five years through no fault of its own," said Tsipras.

Alexis Tsipras. Photo / AP

This is the first time the Greek Premier has targeted his Government's ire at the fund in such a public manner. The IMF, which holds the position of senior creditor in the country's 240 million ($388 million) rescue, is demanding Syriza cross its sacred red line on pensions, which they calculate as amounting to 16.2 per cent of GDP.

The combative speech came after the Prime Minister had met with his parliamentarians and leader of opposition centrist To Potami party. According to reports, Tsipras told his counterparts the country would not fulfil its latest IMF repayment on June 30 if no deal was reached.

His defiant address further exposes the rift between Greece's troika of lenders, whose competing demands on the country have led to a five-month negotiating stalemate.

"Our biggest battles [with creditors] still lie ahead and we must be ready to fight," he said.

IMF chief economist Olivier Blanchard has admitted the debtor country will need a further write-off on its mounting debt pile - a measure which has all but been ruled out by Greece's European paymasters.

The Guardian reported bank deposits have been falling since October and are at their lowest level since 2004.

Withdrawals in recent weeks have averaged 200 million to 250 million a day. On Tuesday, after the collapse of talks between the Government and its creditors, withdrawals surged to 400 million, the newspaper said.

The union representing more than 300 municipalities in Athens said they would only abide by a decree to raid their coffers if it was the last possible measure to save the country from a euro exit.

Greece is due to make its half-monthly wage instalment later this week. This is then followed by a 1.6 billion loan repayment to the IMF on June 30 - the same day the debtor's bail-out programme officially expires.