The spokesperson for the International Monetary Fund Gerry Rice noted that “good progress has been made in the discussions” with regards to the recent talks between the IMF and European institutions on Greece.
However, he argued that the Funds is not asking for anything beyond the “very ambitious medium term fiscal targets, very ambitious targets” that have been agreed between all sides.
“The needed reforms would be less demanding if there was more debt relief on offer from Greece’s European partners,” Rice said. “There’s a calculus between the package of the reforms – the strength of the reform package – and the level of debt relief. That’s really where the discussions are now.”
This position echoes that of Poul Thomsen, namely that additional measures will be necessary, the program targets must be revised, or a generous debt reduction must be carried out. According to the IMF, additional measures worth 4% or 5% of the Greek GDP are necessary in order to cover the fiscal gap by 2018.
“Early return” of the institutions to Athens
Despite the difference of opinion between the EU and IMF, the Fund’s spokesperson hinted towards an “early return” of the institutions to Athens. An exact date will be announced after Monday’s Eurogroup. Mr. Rice also commented that the IMF supports efforts towards completing the bailout review as soon as possible.
A first review of economic reforms under the bailout plan agreed last August, which Greece wants concluded fast to move on to debt relief talks, has been held up by disagreement among the lenders over how much more Athens needs to save in public spending, notably on pensions.
IMF and eurozone officials hope to reach a compromise on Greece in talks this week, before a meeting of euro zone finance ministers on Monday. The two institutions disagree on how much more Greece needs to do to make its debt sustainable, which could delay further loan payouts.
Source: Reuters
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