IMF demands a sustainable debt to participate in the new Greek bailout

30 October 2015
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The International Monetary Fund is open to discussing its participation in the new bailout program for Greece, provided that certain terms are taken into consideration, such as the need to restructure the country’s public debt, argued IMF spokesperson Jerry Rice on Thursday.

According to Mr. Rice, the IMF is prepared to participate in the program, provided that it is based on two axes: strong reforms and a sustainable debt. Resuming and completing the first review will depend on the government policies and their implementation, underlined the IMF spokesperson. Mr. Rice added that the reform agenda was ambitious and reported that there was good cooperation with the Greek government.

When asked whether the Fund agrees with the Eurozone position that the bank recapitalization must be linked to completing the first review, the spokesperson responded that the ECB will publicize its review of the capital needs of Greek banks at the end of the week. Mr. Rice suggested that the Fund supports the independence of the banks and that it does not desire the government’s involvement in the bank managements.

Furthermore, Mr. Rice stressed that the recapitalization of the banks, supporting their management and addressing the ‘red loans’ will encourage trust in the banking sector and the Greek economy in the midterm. When asked about the loans Greece has received from the IMF, the spokesperson stated that the IMF would welcome early repayment. After the first two bailout loans, Greece owes the IMF about 23 billion euros.

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