Thomsen Reportedly Proposes IMF Absence from Greek Bailout

Poul-Thomsen1The Director of the IMF’s European Department, Poul Thomsen, as well as other Fund executives are recommending that it withdraws from the Greek program, Greek financial newspaper Ependisi reported on Thursday.

“The IMF should not give a new loan, but must leave the Greek program,” Thomsen is reported to have proposed, according to the newspaper.

Thomsen, who oversees IMF’s programs in Greece and Portugal, is allegedly insisting on the Fund disengaging itself from Greece as, in his view, the country’s program doesn’t meet the conditions set forth in the Fund’s Statute for its participation in a support program.

According to the paper, Thomsen’s view is shared by many other technocrats of the IMF involved in the Greek program, who are suggesting a “velvet divorce” with Athens in a way that will allow the Fund to remain as a technical adviser without participating with a new loan.

The news report also noted the political pressures placed by European governments and the US on the head of IMF to keep the Fund in the Greek program.
(Source: ANA-MPA)