Greece debt talks remain fraught despite IMF optimism
AFP
AFP, WASHINGTON: Critical talks on easing Greeces massive debt burden remain fraught with conflict, despite assurances from the International Monetary Fund on Thursday that the sides are closer to an agreement. A deal to secure debt relief for Athens from the eurozone is the missing piece to unlocking loans the country needs to make debt payments and begin to recover from the years-long crisis.
But transcripts of part of the recent discussions between the IMF, the European Central Bank and eurozone finance ministers published by Greek financial website Euro2day on Thursday show many disputes remain and few of the participants are satisfied, least of all Greece Finance Minister Euclid Tsakalotos.
He slammed one of the proposals floated in the discussions the worst of all worlds for Greece. I dont think anyone here can say that is a good deal for us, who have negotiated in good faith.
This seems to contradict comments from an IMF official Thursday, who said the differences are narrowing even though the fund needs more specifics on a debt relief plan before it can agree to release more financing.
Everyone is optimistic that agreement can be reached and hopefully can be reached at the next Eurogroup meeting in mid-June, IMF spokesman Gerry Rice told reporters.
In contrast, the IMFs main negotiator, Poul Thomsen, said he was very far away from being able to tell our board that we are close to a strategy we can agree to on debt relief, according to the transcripts.
Greeces debt mountain stands at a towering 180 percent of annual output, the legacy of a crisis that brought panic to the markets and nearly forced the country out of the euro.
The sides early this month announced an agreement on a package of reform measures, including on the tax and pension system, that has since been approved by the Greek parliament.
The deal was aimed at unlocking the next tranche of aid from Europe from the third, 86-billion-euro ($94 billion) aid deal Greece and its creditors secured in July 2015.
Greece needs the funds to repay seven billion euros ($7.6 billion) in maturing debt in July.
Germany however will not agree to release the loan unless the IMF participates, and the fund will not participate unless there are more details on debt relief, even if the final structure is not revealed until years from now.
The sides failed to reach a debt agreement in the meeting in Brussels on Monday, and there is no possibility of IMF participation without assurances that Greeces debt will be sustainable, Rice said.
Eurogroup president Jeroen Dijsselbloem floated the possibility of the IMF approving a loan for Greece, but withholding disbursement of the funds until it had sufficient details on the debt reliefsomething virtually unheard of in IMF aid programs.
