‘No IMF de­ci­sion on Greek bailout un­til au­tumn’

The Pak Banker - - COMPANIES/BOSS -

There is strong sup­port at the IMF for join­ing a new bailout pack­age for Greece but the fund will not de­cide whether to par­tic­i­pate un­til au­tumn, Swe­den's rep­re­sen­ta­tive to its ex­ec­u­tive board told media. The In­ter­na­tional Mon­e­tary Fund has been part of Greece's first two fi­nan­cial res­cues, but doubts have been raised about its com­mit­ment to a third pack­age. The Euro­pean Com­mis­sion said on Fri­day the Fund was par­tic­i­pat­ing fully in bailout talks be­tween Greece and its in­ter­na­tional lenders that started in the last week of July.

A day ear­lier the Fi­nan­cial Times, cit­ing a sum­mary of an IMF board meet­ing, said the Fund could not of­fi­cially join the talks un­til af­ter Greece agreed com­pre­hen­sive re­forms.

Thomas Ostros, who is an

al­ter­nate

- or re­place­ment - di­rec­tor on the fund's 24-mem­ber board, said there was "strong (IMF) sup­port for be­ing part of a new loan pro­gram, but it will take time," ac­cord­ing to an in­ter­view. "There is go­ing to be a dis­cus­sion dur­ing the sum­mer and au­tumn and then the board will make a de­ci­sion dur­ing the au­tumn," he said. Athens is seek­ing up to 86 bil­lion eu­ros ($94.5 bil­lion) in aid in what would be its third bailout since 2010. Ostros, a for­mer gov­ern­ment min­is­ter, said there was a risk a new pack­age would sim­ply de­lay the day of reck­on­ing un­less Greece adopted painful re­forms. "It can not be some­thing that is forced on them. Greece must own the prob­lem. The Greek gov­ern­ment is not there yet," he said. "...They have an in­ef­fi­cient public sec­tor, cor­rup­tion is a rel­a­tively big prob­lem and the pen­sion sys­tem is more ex­pen­sive than other coun­tries."

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