The Greek bailout program is not heading for a crisis, Eurogroup President Jeroen Dijsselbloem told CNBC on Thursday, saying that the completion of the review is close.
“We’re getting very close (to an agreement) so I’m not for all this crisis talk. If we concentrate on where we are and try and push it through we’ll get it done far before the summer,” the Dutch finance minister said, adding that there was “hopefully” no danger of Greece facing a default before more bailout money can be disbursed.
Dijsselbloem added that once Greece implements the necessary pension reform, income taxation levels and privatization, among other issues, “then we will come to the debt and see what needs to be done now or later.”
Greece anticipates the completion of the review since it is linked to talks on debt relief. Athens insists that debt easing will unlock the path to growth. The International Monetary Fund pushes European creditors (the European Central Bank, European Stability Mechanism and European Commission) to offer debt relief to make the Greek debt sustainable. Yet, Europeans are reluctant to offer more debt relief before Athens implements required reforms.
However, Greece wants the IMF out of the bailout program with Greek officials claiming the fund demands more austerity measures. IMF Managing Director Christine Lagarde on Thursday reiterated that the fund would not abandon the European institutions involved in financing and overseeing the country’s bailout program but that its participation would depend on how the bailout was structured.
“We will not walk away,” Lagarde said during a question-and-answer session at the IMF and World Bank spring meetings, according to Reuters. “Our form of participation may vary depending on the commitments of Greece and the undertaking of the European partners, but we will not walk away.”
Dijsselbloem told CNBC that Europe wants the IMF to stay in the program because it actually supports Greece.
“So I really need the IMF on board to get the right balance and to get the firm kind of balance that we need,” he said. “We’ve promised Greece that if necessary, we will do more to relieve their debt burden and that promise still stands, and in the coming weeks we will need to debate what more is needed. What I cannot accept is that the IMF leaves, I need their involvement.”
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