Lagarde: IMF Not Ready to Participate in Greek Bailout

LagardeInternational Monetary Fund Chief Christine Lagarde told Reuters that the IMF will downgrade its 2016 global growth forecast as economic prospects worsen. The IMF’s World Economic Outlook is due in early October and is expected to signal the sixth consecutive downward revision in 18 months.

Though Lagarde said she was encouraged by Greece’s efforts in privatization and was hopeful that reform legislation would soon be passed, she stated the IMF’s reluctance in participating in the latest version of the Greek bailout.

“We are not party to the program because I have said repeatedly that the program has to walk on two legs. One, there has to be significant reforms and second there has to be a debt that is sustainable by our standards and our measurements and this at this point in time is not the case,” she said.

Lagarde also said that G20 leaders need to do far more to encourage trade and globalization while fighting inequality and she will make this clear to them on Sunday and Monday in Hangzhou, China.