Doubts over Greece Bailout Without IMF

Despite Greek government officials playing down reports that the International Monetary Fund (IMF) could be ready to pull out of talks for a third bailout, analysts warned that the country’s latest rescue package looked increasingly in doubt.

The finer details of Greece’s third aid package – worth 86 billion euro ($94 billion) — are currently being discussed by the IMF, European Commission and European Central Bank, as well as the European Stability Mechanism (which distributes bailout funds), in Athens.

But the IMF might have thrown a curveball into the talks, following a report on Thursday in the Financial Times that, without debt relief for Greece, it would not be able to take part in the latest aid package. The report said that the IMF’s board has also been told that Greece’s high debt levels and poor record of implementing reforms disqualifies it from a third bailout.