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Merkel Calls on IMF to Participate in Greece's Bailout

04s1lagard1-thumb-large-thumb-largeGerman Chancellor Angela Merkel said that there will be debt relief for Greece so that the International Monetary Fund participates in the country’s third, multi-billion euro bailout.
The IMF has expressed concerns over the sustainability of the Greek debt and is reluctant to participate in the 86-billion-euro bailout package that Eurozone finance ministers approved. Nevertheless, the fund participated in bailout negotiations throughout.
Merkel said that Greece can stand on its feet only through necessary reforms. She said that Germany’s hard stance led the Greek government to commit to the reforms. She also praised Greek Prime Minister Alexis Tsipras for accepting these tough reforms required for the loan adding that Athens must now keep its “intensity of work” in the same direction.
However, the German Chancellor reiterated that there cannot be a debt writedown. “We said in July that maybe — no, not maybe — there is still leeway on the extension of maturities, on interest rates,” Merkel said on Germany’s ZDF television. “One can do more in certain ways. But it’s also clear that within the Eurozone there can be no haircut, no reduction in debt.”
The German Parliament will vote on Wednesday on approving the bailout package and German lawmakers insist the IMF commits to be part of it.
Merkel reassured the Bundestag that IMF Managing Director Christine Lagarde has “made it very clear” that she will advocate “that the IMF joins the program in October,” if conditions including debt relief are met, Merkel said. “And I have no doubt that what Mrs. Lagarde said will then become reality.”

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