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> Economy

IMF-Germany at loggerheads over Greek debt

Lagarde insists there must be debt restructuring

Newsroom October 7 01:07

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The management of the Greek public debt continues to fuel tensions between the IMF and Germany, as the former, via Christine Lagarde, reiterated once more that any prospect of the Fund staying on board the Greek bailout program would be dependent on a debt restructuring. On his part, German Finance Minister, Wolfgang Schauble remained entrenched in is position that such a move was out of the question, while, even though US Treasury Secretary Jack Lew clearly sides with the IMF on the matter, is attempting to play the role of mediator between the two to salvage the talks and avoid further economic global turmoil trig erred by the failure of the Greek program. Lagarde made it clear that the IMF could not disregard its internal regulations and participate with 16 billion Euros in the Greek program with it a debt restructuring, stressing the Greek debt was unviable. She added the need for speedy reforms in the Greek economy, but it became more than apparent that the main reason the Fund was considering abandoning the program would be the failure to alleviate the Greek public debt.    

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