IMF: Only on board the Greek program with debt restructuring and reforms

The IMF head Lagarde says Fund wants surplus at 1.5%

The Managing Director of the International Monetary Fund (IMF), Christine Lagarde said the organisation would remain on the Greek bailout program on the conditions that a debt restructuring was achieved that was in line with the Fund’s debt analysis. In an interview to three reporters of the Leading European Newspaper Association, Mrs. Lagarde stressed that besides a debt restructuring the Greek government would have to vote in and implement deep reforms for the Fund to continue to back the program. “This would her feasible if significant reforms were legislated and implemented and if the debt was restructured in order for it to be consistent with the debt analysis”, she told the the journalists, underlining that she had seen progress on reforms. “It is our experience, expertise and discipline that the Europeans value mots after so many years”, she added commenting on the financial assistance the Fund would bring to the table by its participation.

The IMF head made it abundantly clear in her interview that organisation would not take part if a debt restructuring was not achieved. “If the Greek debt is not viable in accordance with the IMF’s regulations, and on the basis of set parameters we will not participate”, she pointed out. She added that the extent of the debt restructuring would be determined by the debt sustainability analysis. “There is no doubt on our mind that a degree of restructuring is necessary”, she said. On the issue of whether the Fund and its European partners saw eye to eye on primary surplus of the Greek GDP in the long terms, Mrs. Lagarde said that the IMF believed a 1.5% target was reasonable given the state of the Greek economy and the ability of the Greeks to make reforms. “We cannot adopt absurd targets or build on an unjustifiable macroeconomic framework”, she said.