Yiannis Mouzakis, Macropolis |
Over the period of nine months that it took to complete the second programme review, the role of the International Monetary Fund as Alexis Tsipras’s strongest ally to secure debt relief was one of the many curved balls that the flew past the Greek prime minister.
Speaking to ARD-TV on Sunday, the German finance minister Wolfgang Schaeuble said that he is open to a parliamentary debate for the disbursement of the latest €8,5bn loan to Greece.
By Jeromin Zettelmeyer (PIIE)
Greece’s latest deal with the Eurogroup—the group of eurozone finance ministers—is bigger news than you might think from the press reactions so far. As expected, Greece got its next disbursement of funds to avoid default, the International Monetary Fund (IMF) gave a symbolic stamp of approval, no actual debt relief will transpire until the end of Greece’s EU-supported reform program, and the IMF will not be prepared to disburse until that happens (if at all). This feels like business as usual. But there is more to the story.
“You either have democracy and you’ve got a good economy, or you have partition called ‘bi-zonal’ and you don’t have an economy, that’s my understanding of things. Now, compensations. The reports usually avoid the issue of compensations, and they say that this is not part of the scope of the study. Why do they avoid it?
By MOHAMED A. EL-ERIAN, Project-Syndicate
The International Monetary Fund has resurrected an old technique – commonly used in the 1980s during the Latin American debt crisis – that would allow Greece to avoid a payment default next month on debt owed to European creditors.