The IMF has made a new proposal for the financial rescue of Greece. As the Wall Street Journal reports, the euro zone countries Greece intended to provide emergency loans totaling been about 200 billion euros by 2040 interest and redemption dates. The loans should therefore be gradually matured partly only until 2080. This would keep the Greek debt service under a quota of 15 percent of gross domestic product, according to the IMF proposal. In Brussels, the idea was received with skepticism.
The IMF is not yet involved in a third rescue package for Greece totaling up to 86 billion euros. Especially Germany insists that this is changing. A solution must be found to July, when a part of the Greek loans to maturity of the bonds. The IMF had repeatedly stated that he would participate only on a “realistic and sustainable” solution. Among others, he holds the objective, Greece could, in time to generate a primary surplus of 3.5 percent of gross domestic product, for hardly reachable.
The proposal could not later than at the next meeting of the Euro group in a week are discussed. The advance is however rated in Brussels as unattractive. Europeans are still cautiously optimistic to achieve a comprehensive agreement for Greece at the meeting. This compromise would allow further, much needed billions of dollars to the country. At the desired package includes not only more austerity and reform conditions for Athens, but also a political agreement for debt measures that meet the requirements of the IMF. “This is difficult, but not out of reach,” said a person in charge. Behind the scenes there was “very intensive technical discussions” about debt.
The Europeans and the IMF different views on the future budgetary situation in Athens. While Europeans expect a primary surplus (before debt service) from 3.5 percent in the next year, the IMF only 1.5 percent expected.
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