IMF Will Not Join Greek Bailout Before Autumn

There is strong support at the IMF for joining a new bailout package for Greece but the fund will not decide whether to participate until autumn, Sweden’s representative to its executive board told a newspaper.

The International Monetary Fund has been part of Greece’s first two financial rescues, but doubts have been raised about its commitment to a third package.

The European Commission said on Friday the Fund was participating fully in bailout talks between Greece and its international lenders that started in the last week of July.

A day earlier the Financial Times, citing a summary of an IMF board meeting, said the Fund could not officially join the talks until after Greece agreed comprehensive reforms.

Thomas Ostros, who is an alternate – or replacement – director on the fund’s 24-member board, said there was “strong (IMF) support for being part of a new loan program, but it will take time,” according to an interview in Thursday’s edition of Swedish daily Dagens Nyheter.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza