Schäuble and IMF continue to cross to Greece – Reuters Germany

Washington the dispute between the International Monetary Fund (IMF) and Finance Minister Wolfgang Schäuble on the progress of the assistance program for Greece is continuing.

Schäuble still sees no reason to talk about debt relief for the crisis country, as he made clear on the edge of the spring meeting of the IMF in Washington. But the IMF he wants in any case as a party to the current utility on board. The Fund, however, maintains the budgetary targets for Greece from the program agreements for no longer realistic and want to take them back. Debt relief it deems essential in order to participate in the program.

Austrian Finance Minister Hans Jörg Schelling excludes a debt cut for Greece, so a cancellation of loans, as Schäuble categorically , However, he can imagine an extension of loan maturities, he said in Washington. The IMF wants to win as the program participants and the Austrians. Failure to do, but that was “no fracture”. Financially Europeans can overcome the problem alone. Schelling expected end of next week in the circle of euro zone finance ministers clarity could be created and can quickly flow new aid payments to Greece. He expects that the pending report to Greek reform progress is present until then. After that, the decision should fall if the IMF ultimately goes into the utility over up to 86 billion euros, which runs until 2018th

Schäuble argued on the edge of the IMF spring meeting, where it was also talked about Greece, because of principal and interest breaks Greece had no problems with its debt. Facilitation are therefore “not necessary, that is undisputed,” This discussion is deflected by his words only of what would do the country of promised reforms. Big changes to program commitments but he does not want to accept. But he may have namely the consent of the Bundestag, seek – and could not be assured.

Such significant changes, however, holds the head of the IMF European Department Poul Thomson inevitable. The goal that Greece until 2018 a primary surplus in the budget – excluding debt service – to demonstrate and hold, was unrealistic, he said. Without new cuts, the country moved to his words this year rather at a budget deficit of one to 1.5 percent of annual economic output. Still more savings but one can not expect the country. Therefore, one must provide for the analysis of debt sustainability as the basis for debt relief, a base that is more realistic than the current. That means that the budget targets for Greece should be lowered. But that debt sustainability would press.