Wednesday, July 15, 2015

Breaking: Radical international organization condemns "unsustainable" Greek debt deal

Yes, the International Monetary Fund:
The financing need through end-2018 is now estimated at Euro 85 billion and debt is expected to peak at close to 200 percent of GDP in the next two years, provided that there is an early agreement on a program. Greece’s debt can now only be made sustainable through debt relief measures that go far beyond what Europe has been willing to consider so far. 
Via BBC. The IMF has officially (in a leaked document completed before the agreement was signed Monday—the IMF is not a direct party to the agreement, but can stop it from going forward)  come out with most respected economists against the deal, even as the Greek parliament is trying to approve it today; because it's too harsh, will not lead to Greece being able to pay its debts (in particular to the IMF, which is the creditor for about 10% of the total), and isn't even properly fleshed out:
The IMF study said European Union countries would have to give Greece 30-years to repay all its European debt, including new loans, and a dramatic extension on the maturity of its debts. Without such extensions creditors might have to accept "deep upfront haircuts" on existing loans, the IMF added.

One senior IMF official said the fund would only participate in a third bailout for Greece if EU creditors produce "a clear plan".

The current deal "is by no means a comprehensive, detailed agreement", the official said.

Meanwhile, how much more evidence do we need? The German/EU views on Greece are not rational.

Bundeskanzlerin. Via Fnord.

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