International Monetary Fund Managing Director Christine Lagarde said she is confident euro-area nations will deliver on their pledge to help Greece lower its public debt to the level agreed on in a joint bailout package.
“I stand on the three-times repeated commitments by the euro partners to consider further measures and assistance to make sure that the Greek debt is reduced substantially” by 2020 and 2022, Lagarde told reporters in Washington today. “I have no reason to believe the Europeans would not themselves deliver on their undertaking vis-a-vis Greece and vis-a-vis third parties.”
The IMF and euro-area nations over the past week have unblocked the latest aid tranche to replenish Greece’s coffers through the German elections in September.
The Mediterranean country’s financial fate has become entwined with German politics, with Chancellor Angela Merkel campaigning for a third term on the promise Germany won’t write off any of the loans made to Greece since the debt crisis broke out almost four years ago.