It is being widely reported that the IMF is very wary of any financial contribution to a third Greek bailout. After not being repaid on time, who can blame them! However much more significantly IMF staff believe the elements so far agreed are not enough to make the Greek government’s debt sustainable.
The IMF think there needs to be some form of debt relief, even if only in the form of repayment grace periods, this is by no means an isolated view, but the problem is that this it is politically unacceptable to Germany. What will be the outcome? Only time will tell but the prognosis is not uneventful.
Solutions Edge 