A high ranking IMF official told site ‘mignatiou.com’ that the Greek debt would not be sustainable, even if a front-loaded debt relief was decided, unless the Greek government implemented the necessary economic reforms. ‘Greece is in a state that it needs a disbursement and we are obviously ready to make concessions. But we have not made concessions on the fact that we need additional guarantees for the debt relief’, said the official.

He went on to say that the Fund would make its final decision on the Greek program after it discussed a sustainability report prepared on the Greek debt at its next executive board meeting. The IMF believes the best solution for Greece is an extension of the grace period and an interest rate adjustment. The official said progress had been achieved with the Fund’s European partners on the Greek program, underlining that everyone had recognised that the Greek debt was unsustainable.