Only ‘real fix’ for Greek debt will do, insists IMF’s Lagarde

International Monetary Fund Managing Director Christine Lagarde insisted on Wednesday that the eurozone must agree on a comprehensive strategy to reduce Greek debt.

“Obviously, from the IMF’s perspective, we expect a real fix, not a quick fix, and that means clearly a debt that is sustainable as quickly as possible,” Lagarde told a news conference in Kuala Lumpur at the start of a visit to Asia just two days after a Eurogroup meeting in Brussels during which a rift between the Fund and the eurozone over how to deal with Greek debt widened.

Institute of International Finance chief Charles Dallara said during a visit to Athens on Wednesday that steps must be taken that would allow the government to ease up on austerity.

“What is needed in my view is to ease the case of fiscal adjustment,” he said.

Germany has insisted that Greece must submit to greater fiscal supervision in return for any debt relief and it is expected that the government could pass as early as next week legislation that would bind Athens to stricter targets, in accordance with the terms of a new loan agreement yet to be signed.

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