IMF board abolishes exemption for funding countries such as Greece

21 January 2016
800 Views

The governing board of the International Monetary Fund has decided to abolish an exemption that permitted the funding of member-states even if they did not meet the necessary terms, provided that they are systemically critical. The abolition came at the recommendation of IMF head Christine Lagarde.

This exemption is what allowed the IMF to participate in the first and second Greek bailout programs, despite the country’s public debt having repeatedly been declared non-sustainable. The decision was take in order to restrict the Fund’s exposure to risk and is part of Mrs. Lagarde’s campaign to secure her reelection at the IMF’s helm.

With the Greek public debt currently unsustainable, the IMF has essentially decided to not provide any funding in the third bailout program and will limit itself to providing technical advice. This development is expected prompt reactions from Athens, Brussels, Berlin and Frankfurt, since European officials have underlined the importance of the IMF’s participation in the Greek program.

Greek Prime Minister Alexis Tsipras is scheduled to meet with Mrs. Lagarde on the sidelines of the annual World Economic Forum in Davos and is expected to discuss the issue, along with pledging the Greek government’s support in her candidacy.

You may be interested

Pakistani gang leader arrested by Greek police
GREECE
shares21 views
GREECE
shares21 views

Pakistani gang leader arrested by Greek police

makis - Nov 27, 2020

The Pakistani leader of a gang, whose knife-wielding members broke into an apartment in Kaminia last Saturday and slaughtered a…

These blood types have a lower risk of contracting Covid-19
HEALTH
shares29 views
HEALTH
shares29 views

These blood types have a lower risk of contracting Covid-19

Panos - Nov 27, 2020

New research adds to the growing body of evidence that people with blood type ‘O’ may have a lower risk…

Former New York Times reporter blasts Amazon for censorship over Covid-19 masks
WORLD
shares44 views
WORLD
shares44 views

Former New York Times reporter blasts Amazon for censorship over Covid-19 masks

Panos - Nov 27, 2020

Former New York Times reporter Alex Berenson has slammed Amazon for attempted ‘censorship’ after the company backed down from its…

Leave a Comment

Your email address will not be published.