Monday, April 4, 2016

Christine Lagarde believes the IMF is still far from an acceptable plan for Greece – The World

The discussions on Greek debt are still far from having reached an acceptable proposal from the International Monetary Fund (IMF), said Sunday, April 3 Executive Director of the latter, Christine Lagarde.

Read also: Greece: the IMF’s role in the new aid plan is still not arrested

“My vision of the current negotiations, is that we are still a good distance of a coherent program that I can present to our board, “, she wrote in a letter to Greek Prime Minister Alexis Tsipras made public on the website IMF.

it responds to a request for explanation of Athens after the publication by Wikileaks of a document on the negotiations between the Hellenic Government and its creditors, where representatives of the institution evoke a possible default of the country.

in his letter, Christine Lagarde recalls having already indicated on several occasions that the Fund could not support “a program that is credible and based on realistic assumptions “, otherwise ” it would fail to restore confidence “ and would force Greece to adopt even more adjustment measures.

“of course, all speculation on the fact that IMF teams consider using a credit event as a negotiating tactic is simply absurd,” says M me Lagarde. “The IMF conducts its negotiations in good faith, not by threats, and we do not communicate through leaks. “

Complaints about the slow pace of negotiations

WikiLeaks has published what the organization has as a transcript of a telephone conference on 19 Poul Thomsen between March particular, the head of the Fund’s European department, and Delia Velculescu, IMF mission chief for Greece. They discuss the strategy to be adopted in the discussions, which include stalled over pension reform and tax reform.

He complained of the slowness of negotiations and differences between the economic forecasts for Greece Europeans and those of the IMF, Mr. Thomsen asks: “what will bring the decision point? In the past, there was a time when the decision was taken and that’s when [the Greeks] were seriously short of money and in default “.

“And it is possible that this is happening again. And in this case it drags until July and clearly the Europeans are not going to discuss during the month before Brexit “, he added in reference to the British referendum on a possible release over the European Union, scheduled for 23 June

Read also:. “the Greek debt questions the political Europe that we want to build”

“Respects private internal discussions “

” I agree with you that successful negotiations are built on mutual trust, and the incident of this weekend made me concerned about our ability to actually make progress in extreme climate sensitivity to statements of either party “, writes in his Christine Lagarde Sunday missive to the Greek Prime Minister.

Read also: Why the Greek debt is unsustainable

She said, however, have decided to allow the IMF experts to return to Athens to continue talks, adding that the team “includes experienced staff, which my complete confidence and my personal support” .

“For it to do their work, as you’ve requested, it is essential that your authorities provide an environment that respects the privacy of their internal discussions and shall take all measures necessary to ensure their personal safety. “

The discussions between Greece and the quartet representing its creditors – the European Commission, IMF, ECB and the support of funds from the euro area (MES) – are scheduled to resume Monday after two weeks pause. The Greek left government regularly accuses the International Monetary Fund to engage in a counterproductive austerity upmanship, even as his country faces in first line to the migration crisis.

Read also: Grexit and default: your questions on Greek debt


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