According to the head of the IMF’s European Department, Poul Thomsen, the precautionary programs proposed by the IMF for Greece will ensure the country’s smooth return to markets and ease ongoing financial assessments. The program is expected to form a policy backbone that will secure the conclusion of Greece’s bailout agreement.
The former head of the Fund’s Greek cabinet agreed with Managing Director Christine Lagarde, who advocated that Greece should maintain some degree of financial lifeline with the IMF. “It would be preferable if we retained some kind of relationship,” she said. During his visit in Washington, Thomsen stated that the exact contours of Greece’s relationship with the IMF would have to be further discussed.
Thomsen was optimistic about Greece ’s slow re-entry to the markets. But the situation remains delicate, he noted, pointing to the recent growth in Greek bond yields. He added that the IMF has received no official notification from Athens regarding its desire to end the program. Talks are set to begin shortly, he said.
It is highly unlikely that tomorrow’s meeting between Lagarde and Greek Finance Minister Gikas Hardouvelis will put an end to the IMF’s relationship with Athens. Instead, IMF negotiations will continue to shape any future developments on the Greek economic front.
Meanwhile, Eurogroup head Jeroen Dijsselbloem said that the sustainability of Greece’s debt should not become a problem given that the country has reached several of its financial goals. Speaking during a recent Washington conference, he added that eurozone finance ministers were expected to discuss whether Athens requires further eurozone assistance in November and December.
“I don’t expect debt sustainability to become a problem,” said the Dutch finance minister. “Greece has done very well, at a high price, but they exceeded expectations.”
See all the latest news from Greece and the world at Greekreporter.com. Contact our newsroom to report an update or send your story, photos and videos. Follow GR on Google News and subscribe here to our daily email!
