Even if the country implements market reforms, VAT increases and pension cuts, its debt will still be too big to service – so why should the IMF contribute to a loan?The International Monetary Fund is only stating the bleedin’ obvious: Greece’s debts are unsustainable and debt relief is required “on a scale that would need to go well beyond what has been under consideration to date – and what has been proposed by the ESM”.The ESM is the European Stability Mechanism, the fund that is meant to be leading the latest €86bn bailout of Greece. So, in essence, the IMF is saying the plan will not achieve one of its primary goals of allowing Greece to fund itself in financial markets within a few years. Even if the country succeeds in implementing the market reforms, VAT increases and pension cuts demanded in Monday’s agreement, the debt will still be too big to service. Continue reading...
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