According to Financial Times online, the IMF’s board was told it cannot participate in the new Greek bailout plan due to the country’s high debt per GDP ratio. This development raises concerns whether the Fund will join the EU’s recent (third) rescue plan for Greece.

According to the Financial Times, which has obtained the confidential four-page summary of Wednesday’s meeting, the IMF will continue to provide technical assistance in the negotiations with Greece, but will not reach a definitive decision as to whether to fork out more loans in months, possibly even next year.

This delay could have significant repercussions on the whole deal reached on July 13 between Greece and EU creditors, as Germany has made it clear that it will participate only if the Fund was present. The document says that the IMF will agree to take part in a new program only after the leftist Greek government has agreed to a comprehensive set of reforms.