Greece’s Syriza Blames International Lenders for Damage to Country

Greece’s left-wing-led government has laid into its international lenders once again, saying that their bailout methods and disagreements among them is damaging the country’s inability to recover.

On Sunday, Greek Prime Minister Alexis Tsipras said that a rift within the so-called troika of the International Monetary Fund (IMF) and European bodies the Commission and European Central Bank over how to deal with Greece’s debt burden was damaging the country’s recovery.

“I would say that what is creating conditions of delay in regaining trust of markets and investors … is the constant clash and disagreement between the IMF and European institutions,” Tsipras told a news conference in Thessaloniki, Reuters reported.

On the one hand, the IMF has said it would not participate in Greece’s third 86 billion euro ($96.8 billion) bailout until the issue of debt sustainability is sorted. Meanwhile, European lenders want Greece to meet numerous conditions of its bailout package before it implements measures to help Greece repay its debts. This assistance could include extending the maturities on Greek loans or even debt forgiveness.

Marica Frangakis, political secretariat and economist for Syriza, which governs in an awkward coalition with the right-wing Independent Greeks party, told CNBC that Greece’s lenders had “failed miserably” in their policies aimed at rescuing the Greek economy.

via CNBC

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, he 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 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