ECONOMY

IMF insists on restructuring of Greek debt

imf-insists-on-restructuring-of-greek-debt

The International Monetary Fund will insist on the issue of Greek debt restructuring, which it considers not just inevitable but also a condition for the new bailout deal.

Managing Director Christine Lagarde said in an interview on Wednesday that the IMF has concluded that the debt is not sustainable as it may reach as much as 200 percent of gross domestic product. She also said that she has repeatedly argued that a significant restructuring of the debt is necessary to the success of any program for Greece.

Lagarde went on to stress that the program will require realistic fiscal targets, to be reached with clear measures identified from the start and with structural measures  that will release the potential of the Greek economy that is restricted by obstacles, protective measures and levies, Lagarde said.