FINANCIAL TIMES: The International Monetary Fund has sent a strong signal that it may walk away from Greece’s new bailout programme, arguing that it will not be able to participate if European creditors do not offer Athens substantial debt relief. ..
In the three-page memo, sent to EU authorities at the weekend and obtained by the Financial Times, the IMF said recent turmoil in the Greek economy would lead debt to peak at close to 200 per cent of economic output over the next two years. At the start of the eurozone crisis, Athens’ debt stood at 127 per cent.
The memo, prepared for EU leaders ahead of the summit on Greece, argues that only through large-scale debt relief — something eurozone officials have fiercely resisted — could Greece see its debt fall to levels where it would be able to return to the financial markets… (more)
EDITOR: Hurrah for the IMF. They are speaking sense. They are not only saving Greece but also the eurozone and possibly the European Union.
