The IMF Managing Director, Christine Lagarde, recalled Monday that any renegotiation of the debt will have “consequences” for the credibility of European indebted countries like Greece, where the favorite party in the legislative requests a major conference on the debt.
“In general, collective efforts are welcome but at the same time a debt is a debt and is a contract,” Lagarde said in an interview with the Irish Times on Monday, before a visit to Dublin.
The leader of the leftist Greek SYRIZA, Alexis Tsipras, favorite Greek legislative elections of January 25, calls renegotiation with major creditors of the country (European Union and International Monetary Fund) and the conditions of the aid program and a partial waiver of public debt (175% of GDP).
Tsipras often cited as an example the London conference, which in 1953 led to the cancellation of most of the debt of a Germany ruined by World War II.
“The default, restructuring, changing the terms of [the debt] have consequences on the signature and confidence in the firm” country that renegotiates, Lagarde added.
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