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Athens welcomes prospect of IMF withdrawal from bailout as way out of deadlock: report

Xinhua, January 13, 2017 Adjust font size:

Athens welcomes the prospect of the International Monetary Fund (IMF) withdrawal from the third Greek bailout as a way out of the current deadlock, Greek government sources was quoted by local media as saying on Friday.

Such a development does not mean a new memorandum, as the framework of an agreement already exists, they stressed, according to Greek national news agency AMNA.

"The possibility of the continuation of the program without the IMF or with IMF participating without funding and consequently with no main role, is a development that may be a way out of the structural disagreement between the institutions," Greek government sources commented.

"This disagreement constitutes a continuous obstacle for the conclusion of the second review without additional measures and the successful conclusion of the Greek program," they added.

Should IMF does not eventually take part in the Greek program, new negotiations between Athens and European creditors will be needed and a new program would need the approval of the German parliament, German Finance Minister Wolfgang Schaeuble told German media earlier on Friday.

In such a case, Greece faces further delays in the conclusion of the second review of the program which already drags on for several months and would mount pressure to meet its financing needs in coming months.

The current program sealed in the summer of 2015 has the approval of the German parliament and other European lenders with the provision that the IMF is participating in the program.

The fund has participated in the first two Greek bailouts signed since May 2010 to keep the debt-laden economy afloat and restore growth.

However, in recent months IMF has expressed serious doubts regarding the sustainability of the Greek debt load, requesting an imminent debt relief and supplementary austerity and reform measures before fully participating in the third Greek bailout.

Both ideas have not been warmly received by Greece and European creditors. Endit