International Monetary Fund Managing Director Christine Lagarde said on Friday it is important that a crucial Eurogroup meeting next week on Greece forges a deal that will put the insolvent country΄s economy on sustainable path — though differences remain over how to achieve this.
She also said European policymakers must implement policy commitments to help lift the euro zone economy next year “It is not over until the fat lady sings as the saying goes,” Lagarde said when asked about the possibility of a Greek deal next week, CNBC reported.
“It is a question of working hard, putting our mind to it, making sure that we focus on the same objective which is that the country in particular, Greece, can operate on a sustainable basis, can recover, can get back on its feet, can reaccess markets as early as possible.”
However, top euro policymakers at odds over Greek debt fix.
The European Union΄s top economic official sought to rule out any write-off of Greece΄s debt to governments on Thursday after a European Central Bank policymaker said for the first time that a “haircut” on part of it was probable.
A row between euro zone governments and the International Monetary Fund over how to make Greece΄s giant debt mountain manageable is holding up the release of 31 billion euros ($39.5 billion) in emergency loans needed to keep Athens afloat.
IMF officials have argued that some writedown for euro zone governments is necessary to make Greece solvent but Germany, the biggest contributor to the bloc΄s bailout funds, has repeatedly rejected the idea of taking a loss on holdings of Greek debt, saying it would be illegal. (Full story here)
For those having problems with Lagarde’s opera terminology:
“It ain’t over till (or until) the fat lady sings is a colloquialism, essentially meaning that one should not assume the outcome of some activity (e.g. a sporting contest) until it has actually finished, similar to a common proverb. It is a perception of Grand Opera, with its stereotypically overweight sopranos.
