The International Monetary Fund, IMF, has signaled its willingness to participate in a new loan program for Greece, Handelsblatt has learned from sources close to the discussions. The move would be a victory for German Finance Minister Wolfgang Schäuble, who has insisted on the IMF’s participation in a new bailout plan, but critics decry the deal as window-dressing.
Under the agreement, the IMF would only need to pay out money if Greece can prove its debt to be sustainable. Greece has rejected the deal.
Euro-zone countries are debating debt relief for the southern European country when its current bailout ends in 2018, but the IMF has claimed it has not received enough details on such plans to provide new loans for the ailing nation.
However, the IMF’s general agreement to participate would allow Mr. Schäuble to calm skeptical German parliamentarians by saying the IMF was on board.
The latest compromise would provide Greece with some room to breathe, just ahead of a looming default in July when the country has to repay some €7.3 billion ($8.20 billion) in maturing loans. Europe’s bailout fund, ESM, would be able to pay out the next loan tranche, winning time to sort out the pressing questions over long-term debt relief in the process.