Greece debt crisis: IMF attacks EU over bailout terms
Source: BBC
The International Monetary Fund (IMF) has fiercely criticised the bailout deal offered to Greece by the eurozone.
It said Greece's public debt was now "highly unsustainable" and urged debt relief on a scale "well beyond what has been under consideration to date".
The IMF told European finance ministers a new bailout should include measures to restructure the country's debt.
The European Commission has now proposed a €7bn (£5bn) "bridging" loan to help Greece pay debt interest.
Read more: http://www.bbc.com/news/business-33531845
Madness.
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LiberalArkie
(15,719 posts)magical thyme
(14,881 posts)still stinks to high heaven.
GliderGuider
(21,088 posts)The International Monetary Fund has set off a political earthquake in Europe, warning that Greece may need a full moratorium on debt payments for 30 years and perhaps even long-term subsidies to claw its way out of depression.
"The dramatic deterioration in debt sustainability points to the need for debt relief on a scale that would need to go well beyond what has been under consideration to date,” said the IMF in a confidential report.
Greek public debt will spiral to 200pc of GDP over the next two years, compared to 177pc in an earlier report on debt sustainability issued just two weeks ago.
The findings are explosive. The document amounts to a warning that the IMF will not take part in any EMU-led rescue package for Greece unless Germany and the EMU creditor powers finally agree to sweeping debt relief.
This vastly complicates the rescue deal agreed by eurozone leaders in marathon talks over the weekend since Germany insists that the bail-out cannot go ahead unless the IMF is involved.
The shit is starting to hit the fan, and boy does it stink.
magical thyme
(14,881 posts)to default completely on the Eurozone debt, and start over from scratch with assistance from the IMF and perhaps (unknown) others?
The US has a major strategic security interest in Greece not becoming a failed state, and in Greece not turning too heavily to Russia and China.
GliderGuider
(21,088 posts)This situation is utterly unconscionable. I don't know how the European and American (lookin' at you, Lloyd Blankfein) architects of this catastrophe can sleep at night or look at themselves in the mirror in the morning.
stuffmatters
(2,574 posts)Only 10% ever went to the Greek govt or people!
Of prior 240 B
25% to bank 'sweeteners" to arrange the prior bailout/loan
65% to pay interest/service on the debt
10% to Greek govt.
This is how a country is 'invaded." No longer by military but by vampire debt. And how you get the Port of Pireaus & the Acropolis
and any pension money left...it's economic warfare intended to destroy Greek democracy & strip the country of all its assets.
J_J_
(1,213 posts)100% outrage
stuffmatters
(2,574 posts)I now put " guardian greece bailout" into search to find it again, & the article was the first entry that popped up.
Joseph Stiglitz has also recently referred to this shocking 90% bailout going to the $ed interests.
FLPanhandle
(7,107 posts)The bailout was intended cover their debt and help with their ongoing deficit.
If someone helps to bails me out of my debts, the money would go to the Credit Cards and Banks I owe.
What else would a bail out do? Go to the Greeks to spend?
I don't understand why you would think a debt bailout would go to anyone other than the creditors.
hill2016
(1,772 posts)I guess the US should "lend" money to Greece?
hill2016
(1,772 posts)they write down their own loans to Greece?
magical thyme
(14,881 posts)oh, and welcome to DU.