The report of the International Monetary Fund angered not only the Greeks but also its European Lenders. Greece was angered because the IMF insists on demanding two major income cuts: pensions cut and lowering the tax-free allowance. Greece’s European lenders, on the other hand, got angry because the IMF insists that the Greek debt is “highly unsustainable” and considers the Europeans’ primary fiscal surpluses of 3.5% as not achievable.
Tuesday afternoon, the head of Eurogroup, Jeroen Dijsselbloem, slammed the IMF report and said at a briefing:
IMF’s Greece report is outdated due to recent growth
the IMF itself agreed that Greece needed reforms
Surprised by “hardness” of IMF’s latest Greece report
Greece is doing better than IMF report suggests
Would consider more Greek debt easing if needed and Greeks “stay constructive”
IMF also still wants more Greek economic reforms in addition to debt relief
Dijsselbloem said also: No forgiveness of Greek debt possible, only further easing of repayment terms.
The brief Dijsselbloem’s quotes via reuters.