Saturday, May 21, 2016

IMF: Greece to pay off debt by 2080 – Times Online

The International Monetary Fund (IMF) demands that the Euro funders far-reaching debt relief for Greece in the next 64 years. The term of the loans from the three euro rescue programs should be extended in total by 2080, according to an internal document of the IMF.

In addition, Greece is to get a longer grace period and only 2040 start repaying the loans. At the same time the interest rates on the loans are to be limited from the programs of the EFSF and ESM to 2045 to 1.5 per cent.

be defined at an early stage would have the details of such debt relief, the IMF demands. The goal is to keep the financing needs for longer time between 15 and 20 percent of economic output and Greece to allow a substantial reduction in the debt burden before it could return to the financial markets to a greater extent target again.

Schäuble expects “reasonable result”

The assumptions of the IMF go far beyond what the ESM in the last Euro group had submitted to proposals. The Euro finance ministers next Tuesday to advise on a disbursement of billions of aid for Greece and wanted to talk about possible debt relief. The IMF makes its participation in the third aid package of such relief depends.

German Finance Minister Wolfgang Schäuble (CDU) expects after a meeting with IMF head Christine Lagarde with an agreement on the release of Greece aids. “I’m still confident that in which it is, what I have said: We will not get a new crisis in and around Greece, and we come to a reasonable result,” Schaeuble said before a meeting of finance ministers and central bankers of the leading industrialized countries (G7).

Schäuble continues to rely on IMF

On the Greeks higher taxes to come soon. About a law, Parliament will vote already this Sunday – two days before the potentially decisive Euro Group meeting. The new package of additional revenue, it is all about indirect taxes amounting to about 1.8 billion euros. According to the 7,500-page law, VAT is increased to most foods and beverages, but also in restaurants, bars and taverns from 23 percent to 24 percent.

Schaeuble said he was confident that the IMF will participate in the third bailout package for Greece. “Without the IMF it would not be reasonable result.” intensive discussions it had already been done. It would be exchanged good arguments. It will now focus on to reach as Tuesday in the Euro group what you had already made a few weeks ago. “Namely, the successful completion of the program review.”


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