IMF Returning to Athens

Gerry Rice, spokesman of the International Monetary Fund, during a press conference at the offices of the IMF in Washington, reported that Poul Thomsen who is in charge of the IMF’s program with Greece will soon return to Athens. In reference to a possible haircut of the Greek debt, Rice said that Greece ‘s European partners have agreed to proceed with debt relief if necessary but it will depend on whether Greece will meet its obligations. In such case Greek debt, as percentage of GDP will be reduced to 124% of GDP in 2020, and it will fall below 110% of GDP by 2022. As far as the financing gap is concerned, IMF spokesman stated  that the issue would be discussed when the IMF mission returns to Athens, adding that European partners should propose “a specific way” to deal with the issue. Rice was also asked about the ”objections” of the Financial Stability Fund, the “delays” in the announcement of the capital needs of Greek banks, and the reforms concerning the issue of recapitalization. He answered that this issue will be examined by Troika. Concerning the assertion of the Director of IMF’s European Department, Reza Moghadam, the IMF had recommended the immediate restructuring of Greek debt, Rice said that Mr. Moghadam’s views be presented in the report that the European Parliament is expected to issue.

READ THE ORIGINAL POST AT greece.greekreporter.com