Has IMF blown up Greece rescue? #Grexit

The “quick fix” market correction, holding off the dropping stocks another day with false hope. The IMF has now resumed the eurozone’s Greek crisis.

It began when Greece missed a payment to the IMF recently and now has again started up the #Grexit engine.

Just when it looked as though there could be a pause in the eurozone’s Greek crisis, the International Monetary Fund has launched a blistering attack on the bailout deal forced on Athens by Germany and other eurozone governments.

It estimates that Greek government debt will now reach a peak of close to 200% of GDP or national income over the next two years – which it regards as impossibly and unsustainably high.

It says that Greece’s debt can now only be made bearable through “debt relief measures that go far beyond what Europe has been willing to consider so far”.

And it makes three other savage criticisms of the reforms forced on Greece by the rest of the eurozone, and whose main elements are being rushed through the Athens parliament today.

It does not believe Greece will be able to achieve continuous budget surpluses of 3.5% of GDP or national income over several decades, as demanded by eurozone creditors.

It regards forecast rates of growth for Greece as unrealistically high.

And it believes that the governance of Greek banks is lamentable, at the heart of so many of Greece’s economic woes, and not remotely being solved.

Source: Has IMF blown up Greece rescue? – BBC News

Has IMF blown up Greece rescue? #Grexit