IMF Won't Commit to Greek Bailout Fund Without More Reforms - or Relief

The International Monetary Fund (IMF) is refusing to contribute to the Greek bailout fund unless the country's debt is "sustainable" - and restructured - IMF Chief Christine Lagarde has said, although her comments suggest the body is open to renegotiation. German malleability is a different matter entirely.


In an interview with European media, Lagarde made clear the IMF will not participate in the financing of Greece's staggering €86 billion (US$92 billion) bailout program, which services the country's debt (currently 178 percent of GDP), if Athens does not commit to further reforms, and the European Union fails to provide specific details in respect of debt relief.

Her statements follow a provisional agreement reached between Greece and its European creditors, which would see the country "reform" its pension and tax regimes, in return for receiving the next instalment of the bailout fund. Greece is due to repay €7 billion (US$7.5 billion) of its debt in July.

Nonetheless, Lagarde's hawkish tone softened somewhat when discussing Greece's obligations in other areas, suggesting the primary budget surplus of 3.5 percent imposed by the EU and much-favored by Germany, was unrealistic, and the country should instead aim for a 1.5 percent of GDP surplus.

"If the Europeans deem differently, then we need to take this into account. But we cannot adopt unreasonable predictions or build upon unjustified macroeconomic frameworks. Restructuring will be needed [but] we are getting close… our team will return to Greece to negotiate in order to have a binding agreement among all sides," Christine Lagarde stressed......https://sptnkne.ws/egZE
   (Sputnik)
19/4/17
-
Related:

• Ethos of Am: Obama Urges Greece to Push Unpopular Reforms to Win "Debt Relief"
• Another Greek crisis not beneficial to anyone
• IMF chief says Greece plan 'good distance away' amid leaks row

--
 ***Voilà l'homme tout entier, s'en prenant à sa chaussure alors que c'est son pied le coupable. Ca devient inquiétant. Un des larrons fut sauvé. C'est un pourcentage honnête.