Greek bailout: The International Monetary Fund’s board has been told that Athens’ high debt levels and poor record of implementing reforms disqualify Greece from a third tranche of bailout funds, raising new questions over whether the fund will join the EU’s latest financial rescue.
The ruling was announced at a two-hour board meeting on Wednesday and means that, while IMF staff will participate in bailout negotiations currently under way in Athens, the fund will not decide whether to agree a new programme for months — potentially until next year.
The delay could have significant repercussions, particularly in Germany, where officials have long said it would be impossible to win Bundestag approval for the new €86bn bailout without the IMF on board. Athens and its bailout monitors were already working against the clock in their attempts to conclude a deal by August 20 before this new development made their lives even harder and a deal considerably less likely.
IMF looks set to pull out of third Greek bailout
IMF MD Christine Lagarde
Source: FT