#BREAKING IMF says not ready to add funds to Greece bailout as it stands now
— AFP news agency (@AFP) May 25, 2016
And just like that, the Greek debt deal that “was”, is now about to be “not”.
According to the AFP, the IMF isn’t fully on board with the latest Greek debt deal, hammered out a few days ago…and is not officially endorsing the deal until the board approves the new loan program.
In short, the IMF is not ready to add funds to the Greek bailout as it stands now. To its credit, the IMF has been aggressively pushing for more Greek debt relief since last summer.
In a conference call with reporters, IMF officials noted that the board should be able to consider the new program by end of year. The fund seeks more details on debt relief by European creditors, as it analyses whether Greek debt is sustainable.
Let us help the IMF out…Greek debt is not sustainable, and will not be after the debt deal. It is this very conclusion that has prompted the IMF to warn that it may come to a conclusion that the latest debt-relief measures are not sufficient.
Two days ago Eurogroup head, Jeroen Dijsselbloem, claimed to have brokered a compromise between Germany and the IMF, when dealing with Greece.
Zerohedge outlines Dijsselbloem’s brilliant three-stage plan:
Short-term: Athens receives funds to reduce its debt and payment terms are adjusted.
Medium-term: Greece would receive longer grace and payment periods.
Long-term: There could be more far-reaching, though unspecified, measures.
Those unspecified measures should scare the shit out of every Greek man, women, and child.
Greece will never repay its debt…and let’s face it, Greece will never truly reform its economy the way Germany wishes, because Greeks are not Germans, and Germany is not Greece.
So we continue to kick the can down the road a little bit longer, while Greeks and Europeans continue to suffer, from what is the latest turn in an never ending Greek drama.