IMF’S Lagarde says Greek plan can’t be based only on tax pledges

Greece must present credible reform plans and they cannot be built only on promises of more tax revenues, International Monetary Fund chief Christine Lagarde said in an interview published by French magazine Challenges on Wednesday.

Lagarde said a Greek economic recovery would require not only Greek reforms but also steps by European creditors to make Greece’s debt sustainable.

However she said the Greek plan had to be credible.

“You can’t build a programme just on the promise of improved tax collection, as we have heard for the past five years with very little result,” she told the magazine.

Lagarde said she did not want Greece to leave the eurozone and did not believe in any eurozone “explosion”.