European officials are pinning their hopes for the lightening of the Greek debt on a last meeting that could end the impasse in talks between Germany and the International Monetary Fund. That meeting will take place off the agenda of the G7 meeting in Canada this weekend.
The heads of Greece’s creditors (the IMF, the European Commission, the European Central Bank and the European Stability Mechanism), along with the finance ministers of Germany and France (and possibly Italy) are expected to have a meeting on Saturday morning to discuss how the Greek debt should be tackled to ensure it becomes sustainable.
This is seen as a potential solution platform, as the meeting will be at the highest possible level, in the presence of IMF Managing Director Christine Lagarde, allowing the Fund to decide on its participation through funding right at the end of the Greek program if it deems the Greek debt to be sustainable.
In Brussels, officials are trying to remain optimistic that this meeting will lead to an agreement with the IMF, as after the outbreak of the Italian political crisis an increasing number of analysts are arguing in favor of a precautionary credit line for Greece, as is the ECB. However, Commission officials still insist on building a cash buffer instead.