Greece does not need a third program, it needs additional funding, IMF spokesman Paul Thomsen said, referring to the additional financing needs of Greece .

Two years ago, Greece’s debt crisis almost brought the euro zone crashing down. And, now European partners are preparing to proceed to Greek debt relief not by writing off their loans, but by extending maturities from 30 to 50 years and further cutting some interest rates, EU officials say.

According to the Reuters, Greece managed to return  successfully to the markets for the first time since its international bailout in 2010, and just two years after imposing heavy losses on its private creditors.
As Reuters reports Greece is still a long way from being able to fund itself unassisted in the market and the International Monetary Fund says Greece is likely to need further financial assistance over the next two years .

The Reuters believes that one reason why the sale of 3 billion euros in five-year bonds yield 4.95 % went  so well on the eve of the support visit by Angela Merkel, was that investors anticipate official debt relief.

“The debt relief has been priced in and the market expects Greece to be quickly upgraded by credit rating agencies” said Alessandro Giansanti, senior strategist at ING Bank in Amsterdam.

“Also, the market also expects debt reduction, and no private sector involvement (write-down) in the coming years” he added.

Of course, as Reuters reports, the North European creditor states strongly oppose to a possible debt forgiveness, which critics say will reward past Greek mismanagement. So the European Parliament and eurosceptics could challenge any debt write-off in the constitutional court.

Thomsen: Greece does not need a new program but additional funding

In an interview with the correspondent of  Mega TV station in Washington, Michael Ignatiou, Mr Thomsen said he would not talk about a new program, but stressed that the country will need more funding .

According to Paul Thomsen , the IMF is not looking for a large amount as it did in the past , but he stressed that there should be some kind of help from the formal sector .

Talking about Greece’s excit to the bond markets, he spoke of a “significant milestone” that will facilitate the commercial banks in Greece to return to the markets, while stressing that one of the key objectives of the program is to restore Greece’s standing in the international markets.

With respect to debt sustainability, he said it is at extremely high levels and that it is absolutely necessary for Greece to acquire full access to the markets and to stop relying on formal sector to cover its financing needs.

Finally , when he was asked about the return of the troika in Greece, Mr Thomsen said he would make a brief visit to check the numbers in the upcoming months but noted that the main meeting will take place after summer.