IMF to stay out of Greeces bailout

first_img Facebook Twitter: @NeosKosmos Instagram Talks between the International Monetary Fund (IMF), Greece and its EU lenders have been at an impasse since German finance minister Wolfgang Schaeuble rejected calls from IMF Managing Director Christine Lagarde for debt restructuring.According to Reuters’ sources, the IMF is likely to accept an advisory role with limited powers over the Greek bailout program but it will not effectively join the table, arguing that the financial targets set in the European bailout are unrealistic without major debt relief.The exact nature of the IMF’s role has not been decided but it will be responsible for drawing up certain proposed agreements and negotiating documents, coordinating with the Greek and European Union sides. “It will be more than an advisor but the role will not have the strict conditionality, like the compliance and economic health checks every three months,” one of the sources told Reuters.“They won’t put money into the program but it won’t be just technical assistance; they will probably take a special advisory role to be created especially for the Greek bailout,” the second source said.“Talks this week just made it clear that the IMF just can’t come on board formally. They will remain part of the troika and be at all the talks.”The decision was supported by Greek officials who estimate it will be positive to have a debt restructuring ally at the table.The Greek side argues that it does not need a haircut but could manage its debt if its repayments were smoothed out, maturities were extended and more expensive IMF debt was swapped for cheaper European funding.Some of these measures are not acceptable for the EU, however, so talks have moved only slowly.The IMF was not immediately available for comment on the what the sources said.last_img

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