Showing posts with label IMF. Show all posts
Showing posts with label IMF. Show all posts

Thursday, February 16, 2017

EU Sends Envoy to Salvage Greece Deal as February Date Looms


by Eleni Chrepa  and Marcus Bensasson
15 February 2017, 2:00 π.μ.

Greece and its creditors are intensifying efforts to complete a stalled review of the nation’s bailout that would unlock much-needed aid before more than 6 billion euros ($6.3 billion) in obligations come due in July.

EU Commissioner for Economic Affairs Pierre Moscovici met with Greek Prime Minister Alexis Tsipras and Finance Minister Euclid Tsakalotos in Athens Wednesday to try to reconcile differences over what reforms are needed to stabilize the country’s economy. European rescue monitors had wanted a deal reached by Feb. 20 when euro-area finance ministers gather in Brussels.

Tuesday, February 14, 2017

Germany wants Greece in euro zone, IMF says no special deals


BUSINESS NEWS | Mon Feb 13, 2017 | 5:20pm EST


By Jan Strupczewski and Joseph Nasr | BRUSSELS/BERLIN
Germany on Monday voiced support for Greece to stay in the euro zone and the European Commission dispatched a senior official to Athens to persuade it to take on further reforms to salvage its bailout accord.

International Monetary Fund chief Christine Lagarde, meanwhile, remained firm that as a lender the IMF could not cut any special deals for the crisis-hit country, which has received three bailouts since 2010.

The moves came as the European Commission forecast a large jump in economic growth for Greece of 2.7 percent and 3.1 percent, respectively, this year and next.

Thursday, February 9, 2017

The IMF Staff Has It Right on Greece


FEB 8, 2017 2:00 AM EST
By Mohamed A. El-Erian
Bloomberg

When the International Monetary Fund’s board met Monday to discuss Greece, it was heartening to read that “most Executive Directors” agreed with the staff’s view that the country’s debt, at 179 percent of gross domestic product at the end of 2015, was “unsustainable.” Yet “some directors had different views on the fiscal path and debt sustainability.” This division within the board also applied to what Greece still needs to do with its budget. With the medium-term primary fiscal surplus heading to 1.5 percent of GDP, “most Directors agreed that Greece does not require further fiscal consolidation at this time.” But, again, “some Directors favored a surplus of 3.5 of GDP by 2018.”

Wednesday, February 8, 2017

Greece: Priorities for a Return to Sustainable Growth

(From the IMF site)
February 7, 2017

Greece should deepen and accelerate reforms, which, together with further debt relief, are needed to allow the economy to return to a sustainable growth path, the IMF said in its latest annual assessment of the Greek economy.

The IMF’s Article IV report notes that the country has made progress in reining in its fiscal and external deficits, although this has taken a heavy toll on society. The report identifies a path to sustainable growth and prosperity that requires a two-pronged approach: ambitious policies on the part of the Greek authorities and significant debt relief on the part of Greece’s European partners.

The Q&A below highlights some of the key issues about the country’s progress and its reform priorities for the period ahead.

Tuesday, February 7, 2017

IMF says Greece should meet lower fiscal surplus target

 Mon Feb 6, 2017 | 9:36pm EST

Reuters

By David Lawder | WASHINGTON
The International Monetary Fund said on Monday that Greece's economy would only grow by just under 1.0 percent in the long run given the constraints of its bailout program, but should meet the fiscal surplus target preferred by most IMF directors.

In its annual review of Greece's economic policies, the IMF said most of its board directors favor a Greek fiscal surplus target of 1.5 percent of gross domestic product by 2018, while some directors favor the higher 3.5 percent target sought by Greece's European lender group.

Friday, February 3, 2017

The IMF Should Get Out of Greece


FEB 3, 2017 1:00 AM EST

Bloomberg

By
Ashoka Mody
The International Monetary Fund's involvement in Greece has been an unmitigated disaster: Time and again, its failure to heed crucial lessons has visited suffering upon the Greek people.  When the fund's directors meet on Monday, they should agree to forgive the country's debts and get out.


The IMF should never have gotten into Greece in the first place. As late as March 2010, with concerns about the Greek government's ability to pay its debts roiling markets, Europe's leaders wanted the IMF to stay away. Europeans feared that the fund’s financial assistance to one of their own would signal broader weakness in the currency union. As Jean-Claude Juncker famously put it: “If California had a refinancing problem, the United States wouldn’t go to the IMF.”

Wednesday, February 1, 2017

Η Επιστολή Τσακαλώτου

 "Σε απάντηση της προκαταρκτικής αξιολόγησης των θεσμών για το επίδομα για τις συντάξεις και τν ΦΠΑ που ψηφίστηκαν από την ελληνική Βουλή και εφαρμόστηκαν από τις ελληνικές αρχές αλλά και τις απόψεις που εκφράστηκαν στην έκτακτη τηλεδιάσκεψη του Eurogroup στις 20 Δεκεμβρίου, θα ήθελα να καταστήσω σαφές τα ακόλουθα:

Σε ό,τι αφορά το μέτρο για τις συντάξεις, παρακαλώ να σημειωθεί ότι τόσο ο πρωθυπουργός όσο και εγώ ο ίδιος καταστήσαμε δημοσίως ξεκάθαρο, και θα συνεχίσουμε να το πράττουμε, ότι πρόκειται για ένα εφάπαξ ποσό που δεν θα έχει μόνιμη επίδραση στην πρόσφατη μεταρρύθμιση για τις συντάξεις. Σχετικά με την προσωρινή αναστολή της αύξησης του ΦΠΑ στα νησιά για συγκεκριμένα νησιά του Αιγαίου το μέτρο θα εφαρμοστεί μόνο για το 2017 και χρηματοδοτείται πλήρως από τον προϋπολογισμό του 2017.

Οι ελληνικές αρχές δεσμεύονται πλήρως να ακολουθήσουν το δημοσιονομικό πλαίσιο που έχει συμφωνηθεί και που βασίζεται στους στόχους για πρωτογενές πλεόνασμα 0,5%, 1,75% και 3,5% για το 2016, 2017 και 2018 αντίστοιχα. Οι ελληνικές αρχές θα ενεργοποιήσουν τον «δημοσιονομικό κόφτη» που θεσμοτήθηκε στο πλαίσιο της πρώτης αξιολόγησης όπως προβλέπεται στο νόμο 4389/16, σε περίπτωση που τα αποτελέσματα που θα επικυρωθούν από την Eurostat αποδεικνύουν ότι δεν έχουν επιτευχθεί οι στόχοι.

New loans for Greece depend on IMF participation: German Finance Ministry

Tue Jan 31, 2017 | 5:13am EST


Reuters

Further financial assistance for Greece depends on the successful completion of a review of its bailout program and the participation of the International Monetary Fund (IMF), a spokesman for the German Finance Ministry said on Tuesday.

"Further payments depend on the successful completion of the program's review and the participation of the IMF," the spokesman said.

Tuesday, January 31, 2017

IMF Warns Eurogroup Loan Measures Not Enough for Greek Debt

by Eleni Chrepa  and Andrew Mayeda
28 January 2017, 4:07 μ.μ. EET

Bloomberg

Greece’s public debt and financing needs will prove “explosive” in decades to come unless Europe overhauls its bailout program to ease the load, the International Monetary Fund says in a draft report as the country seeks a fresh loan payout.

In the IMF’s baseline scenario, Greece’s government debt will reach 275 percent of its gross domestic product by 2060, when its financing needs will represent 62 percent of GDP, the report obtained by Bloomberg says. The government estimates public debt around 180 percent of GDP at present.

Greek Markets Tumble as EU Holds Up Payment Amid IMF Doubts


by Sotiris Nikas  and Nikos Chrysoloras
30 January 2017, 3:44 μ.μ.
Government said to admit most bailout actions still pending
IMF says reforms still needed, debt is highly unsustainable

Bloomberg

Greek stocks and bonds fell on Monday after the government in Athens failed to bridge differences with European creditors over the conditions attached to the country’s latest bailout review and the International Monetary Fund warned that its debt is on an unsustainable path.

Almost two-thirds of the actions creditors have demanded for the disbursement of the next tranche of emergency loans have yet to be completed, the government conceded in a memo discussed between Finance Minister Euclid Tsakalotos and bailout auditors last week in Brussels, a person familiar with the matter said.

This could be Greece’s last chance to save itself


Nasos Koukakis, special to CNBC.com
Friday, 27 Jan 2017 | 3:01 PM ET

CNBC

Despite decisive action proposed by the International Monetary Fund to ease Greece's financial burden, more turbulence lies ahead for the debt-ridden European nation, reveals the latest IMF report, which was delivered to the Fund's board members for consultation. CNBC has received the report through a close source to the IMF.

According to IMF deputy spokesman William Murray, the report will be discussed at the IMF's board meeting on Feb.6.

Germany says expects IMF to participate in Greece's bailout

Mon Jan 30, 2017 | 8:28am EST

Reuters

Germany believes the International Monetary Fund will participate in Greece's bailout and it is too early to start thinking about other arrangements should the IMF bow out, a spokesman for the German finance ministry said on Monday.

The IMF said around two years ago that it would take part in Greece's aid package, the spokesman said at a regular government news conference, and added: "Nothing has changed about that and it's much too early to think about 'what if'".

Friday, January 27, 2017

Greece and Creditors Fail to Make Progress on Bailout Deal


Eurozone finance ministers met in Brussels as a possibly troublesome election season looms in Europe

The Wall Street Journal

By VIKTORIA DENDRINOU and  NEKTARIA STAMOULI
Updated Jan. 26, 2017 4:00 p.m. ET


BRUSSELS—Greece and its creditors failed to resolve their differences Thursday during talks held in hopes of finding a solution for the country’s deadlocked bailout before Europe’s coming election season dominates the Continent’s agenda.

A meeting of eurozone finance ministers here didn’t reach a breakthrough that would clear the way for the conclusion of negotiations on the current review of Greece’s aid package of as much as €86 billion. But there is pressure to get a deal by February, because after that, a series of elections in the Netherlands, France, Germany and possibly Italy could distract attention and reduce governments’ interest in making any unpopular concessions on Greece.

Wednesday, December 14, 2016

Greece Heads Toward New Crisis in Debt Saga as Support for Tsipras Slumps

The ruling Syriza party is considering calling snap elections in 2017, as it loses hope of winning concessions on debt relief or austerity from Greece’s creditors

The Wall Street Journal

By NEKTARIA STAMOULI and  MARCUS WALKER
Dec. 12, 2016 1:48 p.m. ET
36 COMMENTS
ATHENS—Greece’s crisis is approaching a potential breaking point after a year of relative calm, as a government with declining political stamina confronts creditors’ unyielding demands.

The ruling left-wing Syriza party, grappling with slumping popularity, is considering the option of calling snap elections in 2017, as it loses hope of winning concessions on debt relief or austerity from the eurozone and International Monetary Fund.

No decision for elections has been made, said Greek officials, who added that they would review the state of negotiations in January, after pressing creditors again to show more flexibility.

Tuesday, December 13, 2016

The IMF is Not Asking Greece for More Austerity


Posted on December 12, 2016 by iMFdirect
By Maurice Obstfeld and Poul M. Thomsen
Versions in عربي (Arabic); Français (French); Deutsch (German); ελληνικά (Greek); and Español (Spanish)
Greece is once again in the headlines as discussions for the second review of its European Stability Mechanism (ESM) program are gaining pace. Unfortunately, the discussions have also spurred some misinformation about the role and the views of the IMF. Above all, the IMF is being criticized for demanding more fiscal austerity, in particular for making this a condition for urgently needed debt relief. This is not true, and clarifications are in order.

Wednesday, December 7, 2016

Europe's Still Dithering Over Greece


Bloomberg
Editorial Board
DEC 7, 2016 12:30 AM EST
This week, the European Union’s finance ministers granted some new debt relief to Greece. The new “short-term” measures are better than nothing -- but they’re less than a convincing solution to a problem that has dragged on far too long.

The deal, sketched out and agreed to in principle earlier this year, should help the Greek government convince voters to keep accepting much-needed domestic reform. That’s good. It isn’t enough, though, to put the country’s debts and budget plans on a sustainable footing. That’s why the International Monetary Fund, whose support will be necessary to achieve that larger goal, isn’t yet on board. After years of muddling through, the issue still isn’t resolved.

EU Offers Greece Near-Term Debt Relief, Demands More Reforms


by Nikos Chrysoloras , Corina Ruhe , and Jonathan Stearns
December 5, 2016 — 2:59 PM EST December 5, 2016 — 4:12 PM EST
Regling says steps may cut debt by 20 percentage points of GDP
Debt measures ‘very promising,’ says Greece’s Tsakalotos

Euro-area finance ministers agreed to measures that will help ease Greece’s debt burden, while insisting that the government of Prime Minister Alexis Tsipras adopt “serious” reforms that will ensure the nation maintains a proper fiscal record after the end of its current bailout.

Finance ministers from the currency bloc meeting in Brussels clinched steps that could cumulatively reduce Greece’s debt by 20 percentage points relative to gross domestic product through 2060, Klaus Regling, managing director of the European Stability Mechanism, said Monday. The measures include easing the repayment schedule of bailout loans, waiving a coupon penalty that would amount to about 200 million euros ($215 million) and swapping debt to mitigate interest rate risk.

Tuesday, December 6, 2016

Greece gets short-term debt relief from eurozone

By Pan Pylas | AP December 5 at 4:14 PM

The Washington Post

BRUSSELS — Greece won some short-term debt relief from European creditors on Monday even though it failed to clear the latest hurdle in its bailout program that has prevented the country going bankrupt and crashing out of the euro.


At a meeting of the 19 eurozone finance ministers in Brussels that was largely overshadowed by the Italian referendum result that forced Premier Matteo Renzi to offer his resignation, Greece’s creditors offered some immediate help to the cash-strapped Greek government.

Eurozone Finance Ministers Agree to Some Debt Relief for Greece’s Bailout

Maturities extended and interest rates locked on some Greek debt but no agreement yet on IMF participation

The Wall Street Journal

By VIKTORIA DENDRINOU and  NEKTARIA STAMOULI
Updated Dec. 5, 2016 4:10 p.m. ET

BRUSSELS—Eurozone finance ministers, seeking to get the International Monetary Fund to participate in Greece’s bailout, agreed on a package of short-term measures that could ease the country’s debt load by around a fifth in 2060.

The ministers, gathering in Brussels for their monthly meeting on Monday, had hoped to move closer to agreeing on a set of overhauls Greece must enact under its bailout—which could reach €86 billion ($92.3 billion)—as well as a series of debt-relief measures from its European creditors. Both steps are required to get the IMF to participate in the bailout.

Friday, December 2, 2016

Eurozone Bailout Fund Proposes Short-Term Debt Relief for Greece


ESM proposes extension on some maturities and locking in the interest on some loans to ease Greece’s debt load

The Wall Street Journal

By VIKTORIA DENDRINOU
Updated Nov. 30, 2016 7:57 a.m. ET
2 COMMENTS
BRUSSELS—Confidential proposals drawn up by the eurozone’s bailout fund could reduce Greece’s debt load by about a fifth in 2060.

A six-page document, dated Nov. 25 and seen by The Wall Street Journal, was produced by the European Stability Mechanism, the Luxembourg-based eurozone bailout fund. It outlines measures that could be taken in the near future to reduce Greece’s large debt load.

The paper proposes to ease Greece’s debt load by extending some maturities and locking in the interest on some of Greece’s loans to shield it from future interest-rate increases.