IMF Chief Denies Threat to Pull out of Greek Bailout

International Monetary Fund Managing Director Christine Lagarde denied on Sunday that IMF staff would push Greece closer to default as a negotiating tactic on a new Greek bailout deal, which she said was “still a good distance away.”

Lagarde said in a letter to Greece’s prime minister that the debt talks should continue despite damage from reports of a leaked transcript suggesting that IMF staff may threaten to leave the bailout to force European lenders to offer more debt relief.

“Any speculation that IMF staff would consider using a credit event as a negotiating tactic is simply nonsense,” Lagarde wrote to Greek Prime Minister Alexis Tsipras.

“My view of the ongoing negotiations is that we are still a good distance away from having a coherent program that I can present to our Executive Board,” Lagarde wrote, adding that such a deal must put Greece on a path of robust growth and gradually restore debt sustainability.

Reuters

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Craig Erlam

Craig Erlam

Senior Market Analyst - UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a Market Analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam