German Press: Possible Withdrawal of IMF From Greek Bailout Might Lead to Grexit



590_c1d14ff92d6164730b4e2980d5f391bfThe uncertainty of whether the International Monetary Fund will participate in Greece’s bailout program generates pessimistic scenarios about the country’s economy, according to German press reports.

“New Money, Old Controversy” is the title of an article in business daily Handelsblatt, referring to Monday’s Eurogroup where only half of Greece’s 2.8-billion-euro loan tranche was released. However, “The IMF’s participation in the support program remains uncertain,” the report notes.

German newspaper Die Welt says, “The fact that the IMF is threatening to leave the club of creditors, brings the German government in a very difficult position. The German parliament had put a condition that the strict IMF auditors should agree to the current support package, since there is a strong distrust of the European Commission, which maintains a more lenient attitude. If the IMF will not contribute financially, it would be almost impossible for the grand coalition to convince (German) citizens that Greece is not a huge bottomless barrel.”

In the article entitled “Debt Haircut and Then Goodbye,” the Die Welt writer argues that, “At best, the departure of IMF could be the start for a frank discussion on a generous debt haircut for Greece — while at the same time the country leaves the monetary union.”

With the optimistic title “The EC Sees Progress in Greece,” the Der Tagesspiegel newspaper report notes the great difficulties facing the country: “The EC sees no reason not to authorize the disbursement of the next tranche for Greece. But money does not solve all problems. Greece’s economy is growing very slowly.”

“Once again the European Finance Ministers were in Luxembourg to discuss the disbursement of billions of support for Greece. Greece may no longer be on the brink of financial collapse, but the economic situation is still far from rosy. There are many shadows and little light,” Der Tagesspiegel says.