Saturday, October 8, 2016

Schäuble: No dispute with IMF Chief Lagarde on Greece – THE WORLD

updated: 20:41 PM | Reading time: 2 minutes

Washington – With the Greek bailout, German Finance Minister Wolfgang Schäuble is no conflict with IMF Chief Christine Lagarde.

“We have no quarrel,” said Schäuble on Saturday in Washington at the conclusion of the annual meeting of the International monetary Fund (IMF). “We are all in good spirits.” Already in the spring, there have been different opinions, the agreements of the Euro group may be unique. “It remains, also, the IMF knows,” said Schäuble.

Controversial to the point, how sustainable the Greek debt, and whether Athens will need further facilitation is argued – such as the IMF. The question is whether Greece surplus (excluding debt service) in its budget by 3.5 percent, the economy reaches the necessary Primary power. Here, the IMF is more pessimistic than Athens. Schaeuble noted that Greece have, if necessary, commits to further measures, should be missed the budget target. According to the agreements of the Euro group in the spring should be in addition, until 2018 about possible additional measures.

The IMF makes use of the debt sustainability of Greece, his participation in the third aid package for Greece. Which so far has been financed only by the Europeans. IMF Head Christine Lagarde was last covered, and stressed that the Greek debt continues to be unsustainable. A contribution from the Fund but it was also essential that the Bundestag has approved the bailout package.

The Euro rescue Fund, the ESM was transferred in June to EUR 7.5 billion from the third aid programme, the Euro group had made the payment of the rest sum of 2.8 billion euros, but in the implementation of other important reforms (“milestones”). According to schäuble’s will be presented this Sunday by the Euro working group a review of the creditor institutions on the implementation of the 15 key reforms.

Schaeuble expects Greece will not have met these reforms to a hundred percent: “This would be so new that I the speculative prediction already, dare.” The creditor institutions should explain that the reforms were largely met, then the Eurogroup discuss and would, if necessary, to decide.


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