IMF To Insist on ‘Unsustainable Debt’ for Greece, that Would Devour One-Fifth of Its GDP

PRESS RELEASE

IMF To Insist on ‘Unsustainable Debt’ for Greece, that Would Devour One-Fifth of Its GDP

July 17, 2017 (EIRNS)—A debt sustainability analysis (DSA) by the International Monetary Fund (IMF) has found that Greece’s debt is unsustainable under every scenario, including those proposed by the European Union itself. The report shows that the debt will be unsustainable after 2030, as servicing it will require more than 20% of Gross Domestic Product! The IMF will also likely warn about weaknesses in the Greek credit system, claiming it will need additional funding of €10 billion.

The so-called bailout of Greece with over €250 billion in new loans since 2012, was seen as unsustainable by the IMF from the beginning, because it was considered an attempt to bail-out the bankrupt Eurozone banks at the expense of the Greek people. Under the bail-out, the ratio of Greece debt to GDP has shot up from 100% to 180%.

Nonetheless, the IMF under the leadership of Madame "Save the Euro" Christine Lagarde signed on to the first two bailouts. It remains to be seen if the IMF board allows her to sign on for its third bailout.

The Greek Parliament report recently found that the Greek debt would absorb 96% of the country’s GDP.

This DSA will be presented for discussion to the IMF’s Executive Council on July 20 after which they will decide whether to participate in the Greek program. According to unnamed IMF sources cited by Kathimerini, the DSA suggests that the Executive Council tell the Eurozone that unless there are more debt-relief measures, the IMF will not be able to participate with the Fund in this third "Greek" bailout.