IMF to participate for ‘last time’ in Greek bailout: Schaeuble
ATHENS: The International Monetary Fund (IMF), a key creditor in Greece’s bailout, will not participate in any further rescues of the debtwracked country, Germany’s finance minister told a Greek newspaper Saturday.
“We have all acknowledged (euro zone and the IMF) that the third Greek (bailout) payment will be the last with the participation of the IMF,” Wolfgang Schaeuble told Greek daily Ta Nea.
The German finance chief has been inflexible on the issue of Greek debt relief, in opposition to the IMF, which says it needs to be done to breathe new life into Greece’s floundering economy.
An agreement was reached last month to pay the third tranche of Greece’s €86 billion ($97 billion) bailout, after being held up for months by a row over its need for debt relief which has pitted bailoutweary Germany against the IMF.
After participating in two previous international loans to save Greece from bankruptcy, the IMF is still set to take part in a third bailout. But for the moment, it has held back its contribution over the issue of whether the euro zone will decide to ease Greek debt — currently at 180 percent of gross domestic product (GDP).
Since 2010, the international bailouts accompanied by tough austerity measures “have obtained some results but have not resolved the problem,” said Schaeuble, who hopes a solution can be reached by the end of the current program in 2018.
Under pressure especially from Berlin, Greece’s 18 other euro partners have not yet broached the issue of debt relief, preferring to push that hot-button topic to next year.
But IMF chief Christine Lagarde has warned that Greece’s debt is not sustainable and that the country requires significant debt relief from Europe.
In the interview, Schaeuble pointed to the European Stability Mechanism (ESM), a bailout fund for euro zone countries, as a way to respond to the future needs of countries sharing the single currency.