Joyous mood surrounding Greece’s debt relief turned a bit sour as International Monetary Fund (IMF) posed doubts whether the relief would be sufficient or not. According to IMF, though lenders have agreed to hand Athens €7.5 billion cash by next month, there is a strong possibility that IMF may not take part in it.
Presence of IMF in the deal is more crucial than its monetary contribution, its presence makes any deal internationally credible to investors.
As of latest, IMF’s official position is that it would formally contribute funds to Greece, only when its debt is on sustainable downward trajectory.
According to IMF official,
“We need to sit down and quantify the measures and have a conversation with our European partners whether these measures, if quantified, are sufficient to restore debt sustainability at the end of the program period.”
And if it doesn’t add up, IMF will again engage in conversation with Euro group and look for additional measures of debt relief.
