The International Monetary Fund has thrown the Greek bailout into jeopardy once again after it emerged that staff at the IMF are currently unwilling to take part in the new rescue deal.
Leaked minutes of the fund’s latest board meeting, which took place on Wednesday, showed staff “cannot reach agreement at this stage” on whether to take part in the new €86bn (£60bn) bailout for Greece. The document said there were doubts over the capacity of the Athens Government to implement economic reforms, as well as the over the sustainability of the country’s sovereign debt pile, which is now projected to hit 200 per cent of GDP.
The German Chancellor, Angela Merkel, only sanctioned a new Greek deal earlier this month on the condition that the IMF takes part.
If the fund fails to sign up, the rescue package might not win the approval of the German Parliament, potentially throwing Greece’s future in the single currency into doubt again.
The new bailout deal is supposed to be concluded by late August.
Earlier this month the Greek Prime Minister Alexis Tsipras caved in to the demands of Greece’s eurozone creditors at the 11th hour by agreeing to impose more public sector austerity in order to secure some breathing space for the country’s struggling banking system and to secure the cash Athens needs to avoid a default.
But the decision split his anti-austerity Syriza party, with more than 30 of Mr Tsipras’s own MPs rejecting tax-raising legislation in the Athens Parliament.
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