An IMF report claims that Greece will be in dire straits for the foreseeable future.
The organisation, which saw its first debtor default this week when Greece failed to meet a €1.5bn payment, has called for €50bn in funds and debt relief over the next three years to stabilise the country. It hass also cut its growth forecast to zero for this year.
The report says Greece's debts are "unsustainable" and that “very signficant changes in policies and in the outlook since early this year have resulted in a substantial increase in financing needs."
It says €35bn of the €50bn required between October of this year and the end of 2018 would have to come from Europe.
“Even with concessional financing through 2018, debt would remain very high for decades and highly vulnerable to shocks,” it reads.
“Using the thresholds agreed in [the second Greek bailout of] November 2012, a haircut that yields a reduction in debt of over 30 per cent of GDP would be required to meet the November 2012 debt targets.”
The Fund makes it clear that its findings have“not been agreed with the other parties in the policy discussions,” a sign of further divisions between the IMF and its Troika partners, who have not been willing to commit to debt relief.
