NEW YORK TIMES: A secret International Monetary Fund study showed Greece needs far more debt relief than European governments have been willing to contemplate so far as fractious parties in Athens prepared to vote on a sweeping austerity package demanded by their lenders.
The IMF’s stark warning on Greece’s debt was leaked as Prime Minister Alexis Tsipras struggled to persuade deeply unhappy leftist lawmakers to vote for a package of austerity measures and liberal economic reforms to secure a new bailout…
The study, seen by Reuters, said European countries would have to give Greece a 30-year grace period on servicing all its European debt, including new loans, and a dramatic maturity extension. Or else they must make annual transfers to the Greek budget or accept “deep upfront haircuts” on existing loans… (more)
