The IMF thinks the hypothesis of a ‘take it or leave it “with Athens as … – Il Sole 24 Ore

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This article was published May 19, 2015 at 18:50.

Faced with the uncertainties of the greek government, makes its way the hypothesis of an ultimatum (give or take) of the IMF as it did in the case of Cyprus, if not He managed to reach an agreement within a reasonable time. Cyprus was confronted with a dilemma: either to restructure the banking system, putting capital controls and obtain loans or be left to his fate. The problem is that Cyprus had a debt “monster” of 330 billion euro, of which 80% with European public authorities and the IMF.

History repeats itself but never understand its effects: between European Monetary Fund is still deep division after the crash of 2010 on how to solve the debt crisis in Greece. An internal IMF document, leaked outside, reveals that Greece would not be able to meet the schedule of payments envisaged by the June 5 without the payment of the last tranche stops from August and amounted to 7.2 billion euro . Also the greek newspaper Kathimerini, conservative and critical of the government Tsipras, has published the news that Athens had warned the IMF inability to honor the payment of 12 May with a letter addressed to Tsipras to Christine Lagarde, the IMF managing director dl before it was suggested the solution-deck use of reserve funds Greeks lying at the same IMF.

The internal IMF document reported that, before agreeing to the release of funds within its competence, the Fund would have decided that “consistent measures on debt sustainability (although the document states that Paul Thomsen , the European head of the IMF, “is not forcing the EU partners to consider a debt haircut”) and may not agree to an agreement hasty and botched (“quick and dirty”).

In a critical step, in coded language, the IMF staff highlights the differences with the European position: the IMF is concerned that the relaxation on reforms eventually granted by Europeans should be offset by a cut debt. The International Monetary Fund – unlike the European Union – can not sign a plan that has no debt sustainability. Greek government sources believe that the IMF could try to download its loans to Greece to the European Stability Mechanism (ESM), the fund created during the debt crisis of 2010, if the internal rules prevented him from signing an agreement by the end of the month . Hypothesis yet to be tested but it could remove the chestnuts from the fire to the Director Christine Lagarde.

At the moment, admits the Fund “we are still far from an agreement with Athens.” The issue is very important, because about half of the remaining funds of the second floor (3.6 billion euro on 7.2 billion euro in total) should be provided by the IMF own.

For measures economic policy, the IMF representatives admit progress “on VAT, bankruptcy regime and tax collection”, while detect delays on pensions and the labor market. The staff of the Fund considers unavoidable other structural interventions, the cutting tip or on lengthening the maturity of debt, while the Europeans are ready to reduce the weight of the reforms, but not to cut debt. A compromise is needed between the creditors before with Greece.

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