Greek debt can cost more than expected: IMF – The Economist

Greece might also need “more exceptional financing” from European states, up from 82.000 to 86.000 million forecast in the agreement reached between Athens and the euro zone, the IMF said.

Alexis Tsipras, Prime Minister of Greece. Photo: Reuters

WASHINGTON euro area must go “much further” than expected to ease Greece’s debt and might even be forced to remove a portion, estimated by the International Monetary Fund (IMF) in a report released Tuesday.

“The debt of Greece can only be viable with measures of debt relief that go far beyond what Europe has plans to do now, “wrote the IMF in this report sent Saturday to the European authorities, prior to the agreement reached Monday with Athens.

Greece might also need” more exceptional financing “from the European states, up from 82.000 to 86.000 million forecast in the agreement reached between Athens and the euro zone on Monday added the document.

The IMF says the debt is “totally unworkable” and expected you will approach 200% of gross domestic product in “the next two years”, against a ratio of 175% today

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In this context, the IMF estimates that Europe will have no choice but to ease the Greek debt, which rejects Germany. Otherwise, the IMF did not participate in financial aid to Greece

The Fund offers three options for Europeans: the first is to extend from 10 to 30 years “grace period” for Greece;. the second aims to “annual transfers” of funds to Greece, and the third would be a “debt elimination” pure and simple, lists the report.

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