The government extended an invitation to the …International Monetary Fund (IMF) to join talks with its European creditors over a third bailout agreed to, in principle, this month, given that negotiations with lenders need to conclude by Aug. 20.
The Radical Left Coalition (SYRIZA) government and new Finance Minister Euclid Tsakalotos played “catch up” on Friday after nearly two weeks after a snap referendum and acrimonious negotiations with European partners. The goal now is to recreate the often vilified “troika” of institutional lenders – EC, ECB and IMF.
The fund on Friday confirmed that it has received the Greek request, what it hasn’t made clear is its position on joining the third bailout. A spokeman merely noted that the fund would “arrange talks” with Athens and the European creditors. The IMF has clashed with European before on the Greek crisis, demanding a debt “haircut” on grounds that it is unsustainable, on the one hand, while pushing for deeper reforms in the pension system and labor market, on the other.
The latest bailout is worth 85 billion euros over three years.
In his letter, the Oxford-trained Tsakalotos said Athens believes it will take “several quarters” before the Greek economy faces up to its challenges “and returns to a vigorous and sustainable path to growth with fairness and social inclusion … We look forward to continued cooperation with the Fund.”