The International Monetary Fund is calling on European creditor nations to commit to “upfront unconditional” debt relief for Greece as part of an international rescue program for the debt-laden nation.
The IMF is involved in talks on making Greece’s debt sustainable to approve the country’s latest reforms and make new loans available.
In an analysis released Monday, the Washington-based lender says that debt relief is “critical” to show markets that Greece’s creditors are committed to helping it navigate the crisis.
The statement comes a day ahead of a meeting among Europe’s top officials in Brussels to discuss the issue.
Eurozone countries have previously balked at discussing debt reduction until a review is completed into how Greece has implemented austerity measures needed to receive an 86-billion euro ($98 billion) rescue package.