BUSINESS

Nowotny: EU doesn’t need IMF on Greece

TAGS: EU, Euro

The International Monetary Fund’s engagement in Greece is no longer necessary with the European Union capable of resolving the situation alone, a senior figure in the European Central Bank was quoted as saying on Wednesday.

“Economically speaking, the IMF is no longer necessary for Greece’s stabilization,” said Ewald Nowotny, head of Austria’s central bank and an ECB Governing Council member.

“This is a problem that the EU can resolve on its own,” Nowotny told Austrian daily Die Presse in an interview.

His comments came after WikiLeaks released what it said was a transcript of a phone conversation between IMF officials expressing frustration at Greece’s slow pace enacting reforms.

The IMF is pushing for EU nations to grant Greece relief on its mammoth debts, but members in the bloc, not least powerhouse Germany, are resisting this.

“Explicit debt relief is unlikely,” Nowotny added.

“Greece has already made massive progress.”

[AFP]

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