EU Told to Bear Burden of Greek Debt
World Economy

EU Told to Bear Burden of Greek Debt

The International Monetary Fund believes that the Greek economy has reached its limits and that the country’s debt is now so difficult to be managed that it is necessary for the Europeans to undertake part of the cost.
Maurice Obstfeld, the director of the IMF’s Research Department, estimated that “there are limits to the blows that economies can or should be able to suffer, so in particularly difficult cases, we recommend a restructuring or a lightening of the national debt, requiring the creditors to take part of the cost of the adjustment. This is the approach we are adopting at the moment about Greece,” Ekathimerini reported.
IMF deputy spokesman William Murray answered a question about Greece saying that after the May 24 Eurogroup meeting of eurozone finance ministers, the issue of the debt has now been laid on the table and “is constantly on the agenda.”
On the timetable regarding the fund’s participation in the Greek program, Murray said that there is no specific timetable for that beyond the updating of the debt sustainability analysis within the year: “We have agreed that the lightening of the debt will be conditional on the targets Greece will be achieving in the course of the program. We are not yet able to say that the IMF is ready to participate in the funding; we hope we get to be so by the end of the year.”
According to Murray, the fund’s latest debt sustainability analysis makes clear “what we believe is required: a significant lightening of the debt.” He also avoided commenting on the completion of the bailout review, saying that the negotiations are only between the Europeans and the Greek side.
Asked to comment on whether there was any distance between the views of IMF Managing Director Christine Lagarde and the head of the fund’s European Department, Poul Thomsen, during the May 24 Eurogroup meeting, IMF spokesman Gerry Rice said this was “nonsense.”
Meanwhile, French Prime Minister Manuel Valls on Friday expressed his country’s interest in investing in Greece and promised the crisis-battered country more support with reforms needed to overcome the financial crisis, as well as help in dealing with the refugee crisis.
“A eurozone without Greece, a Schengen Treaty without Greece, represents another view of Europe that we do not share,” Valls said during a press conference with his Greek counterpart Alexis Tsipras.
He said he was confident the next bailout funds for Greece would be disbursed soon and added that he hoped a solution for Greece’s debt problems would be found.

Short URL : http://goo.gl/VmZX8O
  1. http://goo.gl/QvBTxe
  • http://goo.gl/zSXfXp
  • http://goo.gl/Kh9TF3
  • http://goo.gl/jYReip
  • http://goo.gl/B1RBg9

You can also read ...

Bithumb Hacked, $32m in Cryptocurrency Stolen
Cryptocurrencies dropped after the second South Korean...
South Africa GDP Shrinks
South African gross domestic product shrank 2.2% in the first...
Saudi Arabia, which employs about two-thirds of its citizens, is chipping away at a budget deficit that ballooned to almost 16% of GDP after the oil shock of 2014, while FDI slumped more than 80% last year.
Show up, swipe in. The routine is familiar to office workers...
Washington in March imposed tariffs of 25% on steel and 10% on aluminum, in a move mainly aimed at curbing imports from China.
Russia said on Tuesday it would impose import duties on US...
Taxes in Italy Drive Economy Underground
Italy grew rapidly over the 20th century, and its black market...
European businesses say it has become harder to do  business in China over the past year.
European companies complain they still face a tough business...
Australian Telecom Co. to Axe 8,000 Jobs
Australia’s dominant telecommunications company Telstra...
South Korea to Grow 3 Percent
The Organization for Economic Cooperation and Development has...