Christine Lagarde: Greek Debt is Unsustainable- Reforms Are Necessary

International Monetary Fund head Christine Lagarde reiterated that the Greek debt is not sustainable at the moment.

Lagarde made her remarks during the IMF’s annual meeting in Lima, Peru, the Athens-Macedonian News Agency reports. The IMF has not made it known whether it will contribute to the 86 billion euro bailout deal, that is already in effect. Back in July of this year, the fund had first revealed its now well-known position that the Greek debt is unsustainable and requires some kind of relief.

The fund’s head claimed on Thursday that both initiatives to restore Greece’s debt to sustainable levels as well as the implementation of reforms, particularly in the country’s pension system and in the governance of the banking system, are necessary if the IMF is to participate in the new Greek bailout program.

Lagarde’s preconditions essentially echoed IMF spokesperson William Murray’s remarks in September.

A new IMF report released on Wednesday asserted that additional measures for the Greek economy may have to be introduced if Greece is to meet its 2015 primary deficit targets of 0.25%, as that is prescribed by the bailout.

Greek Finance Minister Euclid Tsakalotos is also attending the event and is expected to meet with Lagarde.