Sunday, 2 July 2017

IMF To Participate For ‘Last Time’ In Greek Bailout

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The Finance Ministry said the International Monetary Fund (IMF), the major creditor of the Greek bailout fund, will not participate in further relief from countries facing debt difficulties.

Wolfgang Schaeuble, the Greek daily Ta Nea, said, "We all acknowledged that the payment of the third Greece (bailout) to the eurozone and the IMF will be the last with the participation of the IMF."

The German Treasury Secretary has no flexibility in the Greek debt cancellation issue against the IMF. The Greek Treasury Secretary insisted that a declining economy in Greece should bring new life to life.

Last month, the IMF agreed to pay a third trench for Greece 's 86 billion euro bailout, retaining the need for debt relief for Germany, which is struggling with bailouts for several months.

The IMF, which participated in two international loans to save Greece from bankruptcy, will still be involved in bailouts.

However, the eurozone does not support its contribution to the question of whether to mitigate Greek debt, which accounts for 180% of GDP.

Since 2010, international bailouts with tighter austerity have "got results but have not solved the problem," Schaeuble said, hoping to be resolved by the end of the program in 2018.

In particular, the other 18 European partners in Berlin, under pressure, have not yet addressed debt relief issues, and they prefer the hot topic until next year.

But IMF Secretary General Christine Lagarde warned that Greek debt is not sustainable and that Europe is demanding serious debt relief.

In an interview, Schaeuble pointed to the European Stability Mechanism (ESM), a bailout for eurozone countries, as a way to address the future needs of countries that share a single currency.

In the meantime, in another Greek newspaper, Klaus Lösling (ESL) chairman shared his view that "the EU has a discussion on strengthening the monetary union." When the new financial crisis occurred, I was convinced that ESM would play a very important role.

"We can take on some of the responsibilities the IMF has undertaken over the past few years and I think the IMF has a broad consensus in the future," he said.

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