FT: IMF, ECB & EC all agree some kind of debt relief necessary for Greece

Germany feeling isolated

The Financial Times reports that Brussels backs the IMF’s position over a Greek debt relief. Germany is being isolated, as it is persisting in ruling out any type of conventional debt relief. The article points out that EU institutions examining the viability of the new Greek bailout plan express their ‘serious’ doubts over whether the country’s debt is sustainable. Te article claims that according to analysts of the European Commission and the European Central bank (ECB) the Greek debt could be rendered sustainable, if measures like an extended period of payment or a decrease in the interest on the loan were adopted. The IMF, however, does believe a classic write off is necessary for the debt to be sustainable, according to the report. Financial Times believes that the analysis by the two European institutions will place pressure on the German side to seek a solution that will make the debt sustainable once it comes up for discussion in the Autumn.