-After Dec 13 Debt Buyback Could Recommend IMF Loan Approval
By Heather Scott
WASHINGTON (MNI) – The success of Greece’s recently agreed support program
– and release of further IMF funds – hinges on implementation of the commitments
made by the euro zone and the Greek government, an International Monetary Fund
spokesman said Thursday.
The debt buyback by Europe is one of the key measures that will be needed
before the IMF will recommend approval of the next tranche of financing, since
it will start the country back on the path to debt sustainability, Gerry Rice,
IMF External Relations director, told reporters at the regular biweekly
briefing.
The debt buyback is expected to be completed by Dec. 13, but there is no
date as yet for the IMF board meeting, Rice said.
“We believe this is a significant and concrete package that can put
Greece’s debt back on sustainable path,” Rice said of the agreement announced
Tuesday, which includes up front debt reduction of 20% of GDP and will “bring
debt back to substantially below 110% of GDP by 2022 provided Greece delivers on
it’s policy commitments.”
But he stressed repeatedly that “success requires Greece and the European
partners to fully implement commitments” agreed to.
IMF Managing Director Christine Lagarde said in a statement Tuesday that
once progress has been made on specifying and delivering on commitments, in part
the debt buyback she would be in position to recommend to board the completion
of first review for the Greek program, which would trigger release of the next
loan tranche.
“We will be looking for implement of the buyback operation, and contingent
on success of buyback, will be in position to put forward recommendation to
board” to approve the review, Rice said.
–MNI Washington Bureau; tel: +1 202-371-2121; email: hscott@mni-news.com
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