La­garde re­turns to de­bate over debt re­lief

IMF boss dis­cusses mea­sures to lighten load as doubts per­sist about Fund role

Kathimerini English - - Front Page -

A form of debt restruc­tur­ing rather than out­right for­give­ness should en­able Greece to han­dle its “un­sus­tain­able” debt bur­den, the head of the In­ter­na­tional Mon­e­tary Fund was quoted as telling a Swiss news­pa­per on Satur­day.

Greece’s eu­ro­zone cred­i­tors, no­tably Ger­many, have ruled out a write­down but are will­ing to con­sider other forms of restruc­tur­ing such as a length­en­ing ma­tu­ri­ties.

Asked about those dif­fer­ences, IMF Man­ag­ing Di­rec­tor Chris­tine La­garde told Satur­day’s edi­tion of Le Temps: “The de­bate on can­cel­ing the debt has never been open. I don’t think it is nec­es­sary to open it if things go well...

“We are talk­ing about ex­tend­ing ma­tu­ri­ties, re­duc­ing rates, (mak­ing) ex­emp­tions for a cer­tain pe­riod of time. We are not speak­ing about can­cel­ing debt.”

The in­ter­view made no men­tion of whether the IMF will take part in the new bailout, which La­garde has pre­vi­ously said it will make a de­ci­sion on by Oc­to­ber.

Last week, how­ever, Ger­man Fi­nance Min­is­ter Wolf­gang Schaeu­ble de­scribed IMF in­volve­ment in the pro­gram as “in­dis­pens­able.”

La­garde’s in­ter­view came as Klaus Regling, head of the Euro­pean Sta­bil­ity Mech­a­nism (ESM), told another pub­li­ca­tion that Europe will be able to han­dle fu­ture eco­nomic crises with­out the help of the IMF. “Euro­peans will be able to tackle on their own the next cri­sis, which will come in the com­ing decades,” Der Spiegel quoted Regling as say­ing.

Newspapers in English

Newspapers from Greece

© PressReader. All rights reserved.