IMF: We are in parallel talks with Greek government!

Greek sources deny parallel negotiations

The IMF Director of Communications, Gerry Rice, revealed that the Fund was engaged in separate parallel talks with the Greek government over the bailout programme. Speaking to the press, Rice made it clear that the Fund would only be part of a new Greek programme if this guaranteed either a sustainable debt or more reforms. Greek government officials were quick to deny any such negotiations were taking place in Athens. “No parallel negotiations are ongoing. If the IMF takes part, it ill do so by presenting its terms, I am guessing after a debt agreement has been reached”, a high ranking official from the Greek Finance Ministry said. Rice left open the prospect of the Fund reaching a decision on the matter in December, linking the timing of the decision with a report on the viability of the Greek debt expected to be submitted to the organisation’s board of directors in the final month of the year. Rice repeated the concerns raised by the Fund in the past that both the Greek debt and the social security system ware unsustainable, adding that more reforms were necessary. He stressed that the IMF would only be willing to take part in a programme that had a realistic 1.5% GDP primary surplus target and reliable reforms.