IMF fires a cannonball into Greek bailout [View all]

[Ghost Dog]

We’ve now got hold of the new IMF report into Greece’s debt sustainability.

And a quick perusal shows that the Fund had comprehensively obliterated the notion that this third Greek bailout will work, as it stands.

The introduction to the report says enough, really:

Greece’s public debt has become highly unsustainable. This is due to the easing of policies during the last year, with the recent deterioration in the domestic macroeconomic and financial environment because of the closure of the banking system adding significantly to the adverse dynamics.

The financing need through end-2018 is now estimated at €85bn 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.

/... http://www.theguardian.com/business/live/2015/jul/14/greek-crisis-tsipras-political-backlash-bailout-osborne-uk-live


IMF at least 'working to rule, then.

& consider: (Source: FT)