The differences between the IMF and its European partners on the Greek matter were reaffirmed again during Thursday’s Euroworking Group session in Brussels, as the they were unable to come to an agreement on how to tackle the Greek debt. The two sides agree on the 5.4bln Euro measures to be implemented by the Greek government for the first review of the program to close.

However, the matter of the long-term sustainability of the Greek debt remains an obstacle, with the IMF demanding more specific details on the course of action regarding the country’s debt after 2018. The IMF is requesting its EU partners to present a Debt Sustainability Analysis in for the Fund to fully commit to the Greek program.

This is why, according to sources in Brussels, a second plan is in the pipelines that would consider a positive political statement by IMF Director Christine Lagarde at the May 24 Eurogroup meeting sufficient for the release of a tranche to Greece. According to this plan, the IMF could reassess its position on the Greek program in September after the country  has received an injection of cash to remain afloat. The technical teams of the EU member states and the ESM are considering a number of options to render the Greek debt sustainable, among which are:

-A 5-year maturity on the loans

-A freeze of interest rates

-Linking capital payments with a maximum of 2% of GDP per annum and transferring the remaining debts to a future time

-A grace extension on interest that end 2022

-A return to Greece of ANFA bonds worth 2bln Euros and SMPs worth 8blb from the ESM

-A partial payment of loans to the IMF by the ESM