IMF to Greece: First reforms then debt restructuring

IMF director agrees with German position

IMF Director Christine Lagarde said that Greece would have to implement reforms before talks of a debt reduction could go ahead, effectively agreeing with the positions expressed by German Finance Minister Wolfgang Schauble. Mrs. Lagarde underlined that a restructuring of the Greek debt would be necessary, but added that this would be decided after the completion of the current program in 2018. Responding to a question in Brussels, the head of the Fund said that the IMF was not demanding more austerity measures but rather for the measures already agreed upon in 2016 to take effect. “We are half way there regarding negotiations with Greece and there is still disagreement on whether we [Fund] will participate or not in the program”, she said. Mrs. Lagarde said it was crucial for the Greek economy to regain the trust of the markets in order for investors return.