Christine Lagarde repeated the IMF’s position that the Greek debt is non-viable but she agreed with Chancellor Merkel’s opinion that before there is any talk about a debt relief, the reforms must be completed.

 
According to the German TV station ARD, Lagarde stated that Greece has indeed made significant progress and the Greek government has agreed with the Institutions to fulfill the rest of the IMF requirements so that it can participate in the program.

 
The reforms necessary, she added include the taxation system and the pensions. Mrs. Lagarde, stated that the second stage is the debt and the extend of its restructuring, which will depend on the effectiveness of the reforms and the strength of the Greek economy at the end of the program.

 
She underlined that there is no need for an actual haircut but rather an extension payments, a significant reduction of the interest rates, things that will be discussed in depth in parallel with the progress of the reforms.