IMF’s Lagarde warns of consequences to Greek debt restructuring

The head of the International Monetary Fund warned Greece that there would be consequences to restructuring its debt after elections where opponents of the country 240 billion euro bailout lead in the polls.

“As a principle, collective endeavours are welcome but at the same time a debt is a debt and it is a contract,» IMF Managing Director Christine Lagarde told The Irish Times in an interview on Monday when asked about the general idea of holding a conference on restructuring Greek debt.

“Defaulting, restructuring, changing the terms has consequences on the signature and the confidence in the signature,» she said.