IMF Steps Up Greek Deal Criticism

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

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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