‘IMF wants euro zone starts talks on Greek debt’ – NU.nl

writes Christine Lagarde, president of the International Monetary Fund (IMF), in a letter to all the Ministers of Finance of the nineteen euro countries.

The letter was sent Thursday, but Friday for the first time by the Financial Times ( FT ) published.

The ministers in the Eurogroup meeting on Monday, May 9th. Before that time, the talks on debt relief must start, says Lagarde.

For strand

The IMF believes that the Greeks had to make a too strict austerity package. If no debt relief comes in the form of lower interest rates and longer maturities on loans, the IMF is likely not to contribute to the emergency program.

In particular, Germany wants to know nothing of debt relief as long as the negotiations on reforms and austerity still running, but the IMF believes that these talks should be conducted at the same time.

Last summer there was agreement on a third rescue package of up to 86 billion euros in exchange for austerity and reform. Greece has yet to introduce a number of reforms including in the pension system. The country is negotiating this with its lenders. In exchange for the reforms Athens would then regain financial support.

essential

It is essential that there be realistic goals, quotes FT Lagarde. She calls the last agreements on the primary budget surplus of 3.5 percent of GDP in 2018 unrealistically high. The primary budget surplus, the balance of governments’ budgets minus the heavy interest costs on the national debt.

Lagarde writes that the agreements does not exceed 1.5 percent primary budget surplus of the Greeks in 2018 .

“Let it be clear that a higher target is not only very difficult to catch, but possibly counterproductive,” the IMF executive.

Brexit

the meeting of the Eurogroup Monday is seen as a last resort where Greece and lenders would come to an agreement.

That’s just in time for the campaigns about the possible departure of the United Kingdom from the European Union, a Brexit, will run at full speed. On June 23, the British allowed here in a referendum for or against votes.

According to FT EU negotiators do not want a tricky negotiation buckle draw with Greece during Brexit campaign. If this month is no agreement, Greece is again in financial trouble as there is on the agenda a strong commitment for July again

By:. NU.nl