The International Monetary Fund is in favor of the idea of participating in Greece’s bailout, however the decision will be taken in the autumn, says a Reuters report.
The report cites Sweden’s representative to the IMF executive board. The fund has participated in Greece’s first two bailout programs, in 2010 and 2012, and is now involved fully in the talks between the debt-stricken country and its lenders. However its board is expressing doubts whether the Greek leftist government is committed to fully implement the reforms required for a third loan and economic recovery.
According to Thomas Ostros, who is a replacement director on the IMF’s 24-member board, the fund supports being part of the new bailout program, “but it will take time,” he said in an interview in Thursday’s Dagens Nyheter, a Swedish newspaper.
“There is going to be a discussion during the summer and autumn and then the board will make a decision during the autumn,” he said.
There are serious disagreements within Greece’s SYRIZA-ANEL coalition government over the austerity of required reforms. Prime Minister Alexis Tsipras is giving a battle with the extreme leftists of his party who urge him to stop negotiations and pull out of the Eurozone.
So far, close to 40 SYRIZA lawmakers voted against the reform bills required before the deal is signed. In September, there will be an emergency SYRIZA congress that will determine the future of the party and, consequently, the government. The prime minister and several cabinet members talk about the possibility of snap elections in the autumn.
It is possible that the IMF is waiting to see the political developments in the autumn in order to decide whether to participate in a new loan to Greece.
“It can not be something that is forced on them. Greece must own the problem. The Greek government is not there yet,” Ostros said, according to Reuters.
“…They have an inefficient public sector, corruption is a relatively big problem and the pension system is more expensive than other countries,” he added.