The International Monetary Fund has stepped up its criticism of the Greek bailout proposals, warning that the plan “categorically” will not work without substantial debt relief.
The head of the IMF, Christine Lagarde, said in an interview on France’s Europe1 Radio that only a “complete package” would receive the backing of the body, which is one of three creditors in the proposed Greek deal. Asked if the plan devised by Greece’s eurozone creditors could succeed without debt relief, Lagarde said: “Categorically, no.”
In an explosive report released earlier this week, the IMF said Greece’s debts can only be sustainable with debt relief measures going far beyond what the eurozone has offered so far.
The eurozone is expected to start formal talks with Greece on securing a bailout worth up to €86bn (£60bn), once national parliaments in Germany, Austria and other countries have given their approval.
via The Guardian