IMF: Greece to Make Debt Payment by Thursday

People walk past the Bank of Greece headquarters, in central Athens, March 27, 2015.

The head of the International Monetary Fund said after a meeting in Washington with the Greek finance minister that Greece will make a loan payment to the Fund later this week.

Christine Lagarde, the IMF Managing Director, said in a statement Sunday following her talks with Finance Minister Yanis Varoufakis that she "welcomed confirmation" Greece would make the payment to the Fund by Thursday.

Varoufakis said Greece "intends to meet all obligations to all its creditors."

Analysts had speculated the new leftist Greek government that has inherited a fragile economy would fail to make payments to its bailout creditors in order to continue social spending.

Lagarde said she and Varoufakis "both agreed that effective cooperation is in everyone's interest. We noted that continuing uncertainty is not in Greece's interest."

The IMF chief said the Fund is "committed" to working with Greek authorities to help the country "return to a sustainable path of growth and employment."

The IMF and European Union lenders have demanded that Greek leaders make and enforce tough spending cuts and implement wide-ranging reforms in exchange for more bailout money.