Eurozone President Believes IMF Will Participate in Greece's Bailout

Eurogroup President and Dutch Finance Minister Jeroen Dijsselbloem said on Wednesday he believes that Eurozone countries and the International Monetary Fund (IMF) will finally come to an agreement for its participation in Greece’s third bailout program.
The IMF is reluctant to participate in Greece’s new bailout because it believes that the Greek debt is unsustainable. They have asked Europe for a Greek debt haircut as a condition to participate in the rescue program. Eurozone countries replied that a nominal debt writedown within the euro is against policy. However, they proposed lower interest rates and a longer repayment period as debt relief.
Speaking in the Dutch Parliament, defending Greece’s bailout, Dijsselbloem said that a compromise is possible if that kind of debt relief is decided. He also said that the Greek debt will be sustainable after the bailout program.
“The IMF is gloomier about that than we are. Their gloomiest scenario is gloomier than ours, but we have come to an agreement about the approach,” he noted.
If the Greek economy performs worse than expected and the country has difficulty in repaying its debt, the loan duration will be examined again, Dijsselbloem said.
The IMF will decide whether to participate in Greece’s bailout in October, when their board of directors will meet.