IMF ready to re-enter Greek bailout programme: Brussels sources

IMF wants cuts in pensions and tax-free threshold to take effect from the start of January in 2019

Sources in Brussels claimed the IMF was ready to come onboard the Greek bailout programme a new, adding, however, that it was not a done deal. The same sources said that the IMF would consider re-entering the programme under the condition that cuts in tax-free threshold, as well as slashes in pensions, would take effect from January 1, 2019, without the implementation of countermeasures.

The Brussels officials from the European Commission added that successfully overcoming the legacy of the Greek crisis would require many years while stressing that the non-performing loans, high unemployment and the public debt were the most pressing matters in the embattled. The EC sources stressed the significance of divestment in the Public Power Corporation (DEI), praising the ongoing sale of the lignite units.

The officials were critical of the Greek state administration commenting on the procedures used to hire general secretaries in the ministries. “There are two ways to do it. You either do it properly, or do it by the book and take on the Minister’s buddies”. They were optimistic on the course of Greece regarding the fact that the country was on course to exiting the programme, while pointing out the country remained low on the competitiveness level.