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IMF now pushing for restructuring of Greece`s debt
Date 18/04/2011 14:31  Author webmaster  Hits 1102  Language Global
18 APR 2011

Irish Independent

The International Monetary Fund believes Greece's debt is unsustainable and that the country's government should consider a restructuring as early as next year.

In what is seen as a dramatic shift in opinion, senior IMF officials have told European Commission and eurozone governments that a restructuring should be considered.

The IMF, which hasn't recommended a restructuring of all the country's debt, has considered extending its loan repayment schedule, IMF spokesman William Murray said.

Eurozone officials, including finance ministers, have said it is necessary to restructure Greece's debt, and the European Central Bank responded by saying it didn't want a public discussion, an unidentified official familiar with the situation said.

A first step would be to substantially extend Greek bond maturities, another unidentified official said, according to reports.

That may include extending debt repayments by as much as 30 years, the official said.

Meanwhile, the IMF's steering committee said the IMF should offer recommendations for national policies that spur excessive flows of capital into other economies as well as policies that seek to temper them.

"Giving due regard to country-specific circumstances and the benefits of financial integration, such an approach should encompass recommendations for both policies that give rise to outward capital flows and the management of inflows," the panel of IMF member nations said.

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