Talks with Greece have gained momentum but still long way from target: IMF

By on April 20, 2015

BERLIN (Reuters) – International lenders’ negotiations with Greece, which were moving at a crawl lately, have won some momentum But remained a ways from the end line, the International Monetary Fund’s European head told a German newspaper.

Athens has been caught in negotiations with its euro zone companions and the IMF over economic reforms required by means of its lenders to unlock last bailout dollars.

“There Has Been slightly bit more impetus within the negotiations between the three institutions and the Greek government for a number of days,” Trade daily Handelsblatt on Monday quoted Poul Thomsen as pronouncing, relating to the ecu Commission, the ecu Relevant Bank and the IMF.

“Which Is a excellent development and provides us cause to hope,” said Thomsen, the director of the IMF’s European division and head of its program with Greece.

However he delivered that they remained “far from the target” and a lot more impetus was once needed within the talks for an agreement to be reached in time.

Shut out of bond markets and running out of cash to satisfy debt repayments and pay civil servants and pensions, Athens could get more help from both the IMF and euro zone governments if there is agreement on reforms to make its finances sustainable and the financial system extra competitive.

Thomsen mentioned the Greek government’s budget would in all probability final until June: “The burden of repayments which are developing for Greece is very giant. We wish to attain an settlement earlier in order that additional help loans can also be paid out.”

Greek Deputy Top Minister Yannis Dragasakis told Sunday newspaper To Vima that Athens aims for a maintain its creditors over a reforms bundle However won’t retreat from its purple strains and didn’t rule out a referendum or early polls if talks reach an deadlock.

Thomsen warned towards underestimating the risks that will be related to Greece leaving the euro zone: “No One should think that a Grexit would not be with out problems.”

He introduced it was vital to attenuate longer-term dangers such as “the risk that the euro zone is considered as a membership that you just join and go away as you please” as that would raise doubts about whether or no longer different states will stay contributors in future.

He stated the only foreign money bloc needed to send “an extraordinarily sturdy political signal” that it was integrating further to dissipate such dangers, adding that it wanted a stronger fiscal and political union in the long term.

(Reporting through Michelle Martin; Modifying via Kim Coghill)

Reuters: Industry News

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