IMF analysis report says Greece needs ‘unconditional’ debt relief

The Fund said that substantial debt relief for Greece is required for it to participate in a new bailout program

The International Monetary Fund has called Europeans to provide upfront and unconditional debt relief for Greece.

In a debt sustainability analysis report released by IMF, it said that Greece’s current budget surplus and growth targets for its bailout program are unrealistically high and should be revised downward, adding that Greece’s debt needs to be restructured.

Few countries have ever managed a 3.5 percent primary budget surplus for long, the report said as Reuters writes.

“In view of this, staff believes that the DSA should be based on a primary surplus over the long run of no more than 1.5 percent of GDP. This target would in staff’s view be within the realm of what is plausible,” the IMF  report said.

The new analysis report was released a day before European finance ministers meet on Tuesday to review Greece’s bailout and discuss the potential for debt restructuring.

The Fund said that substantial debt relief for Greece is required for it to participate in a new bailout program.

Click here to read the full report.