IMF Pushes EU Lenders To Reduce Greece’s Debt

Posted by in Economy

That’s enlightening. The International Monetary Fund allegedly pushes European governments to ease the burden of borrowed sums to Greece. The IMF claims, it is under pressure by its own members about the huge amounts they have lent to Euro Zone. Speaking to Wall Street Journal under conditions of anonymity, IMF officials say, the Greek debt must be reduced to “sustainable” levels, because “Greece’s deep recession has thrown the country’s bailout program woefully off track from targets set earlier this year.”

IMF Pushes Europe to Ease Greek Burden

The International Monetary Fund, facing discontent among its members about the huge sums it has lent to the euro zone, is pushing the currency bloc΄s governments to take steps to lighten the burden of the bailout loans they made to Athens, officials familiar with continuing discussions said.

The IMF pressure—which officials said has been clear in private discussions among Greece’s official lenders—comes in response to mounting evidence that Greece’s deep recession has thrown the country’s bailout program woefully off track from targets set earlier this year.

IMF officials maintain Greece’s debt must be reduced to “sustainable” levels before the fund releases billions more euros to keep Athens from running out of cash, some officials said. The most effective way to do this would be for Greece’s bailout lenders to forgive some of the debts Greece owes them.

Such a step would meet fierce resistance from euro-zone governments, such as Germany, which have already lent €127 billion ($157 billion) to Greece and are adamant that it shouldn’t expect any more concessions.

…..

An IMF spokesman declined to comment.

Exactly how to define “sustainable” will be the centerpiece of a debate expected to stretch for months over how to right the bailout program and keep Greece in the euro zone. The IMF now wants to see the government debt ratio close to 100% of gross domestic product in 2020, when Greece is supposed to have finished repaying €33 billion in loans to the IMF, officials said. (full article Wall Street Journal )

No word mentioned about the IMF’s responsibility on the Greek deep recession, right? I see an impressive shortage of self-criticism here.