The Multilateralist

Report: IMF pressuring Greece to restructure debt

Spiegel is reporting that the International Monetary Fund is now encouraging Greece to restructure its debt: The International Monetary Fund (IMF) doubts that current measures to rescue cash-strapped Greece will be successful and is now privately pushing the country to swiftly restructure its debts, SPIEGEL has learned. High-level representatives from the IMF pushed for a ...

Spiegel is reporting that the International Monetary Fund is now encouraging Greece to restructure its debt:

The International Monetary Fund (IMF) doubts that current measures to rescue cash-strapped Greece will be successful and is now privately pushing the country to swiftly restructure its debts, SPIEGEL has learned. High-level representatives from the IMF pushed for a restructuring during recent discussions with delegates from European governments, according to information obtained by the magazine.

The demands represent a change of course for the IMF, which had previously opposed the idea of debt restructuring for Greece. The organization clearly no longer believes that the current measures will be enough to sort out the debt-stricken country’s finances.

The IMF and the Greek authorities adamantly deny the report. An EU/IMF delegation arrives in Greece this week to talk about the country’s austerity program, amidst reports that its 2010 deficit was significantly larger than first thought.

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