IMF: Greece needs ‘long’ EU grace period on debt payments

Report of comments in a press briefing with Gerry Rice, Director, Communications Department at the International Monetary Fund (IMF) on the 19 May 2016 concerning the debt crisis in Greece and ongoing discussion between the Greek authorities, Eurogroup, IMF and ECB.

Separately, on the IMF said on the 23 May 2016 that Greece needed 'unconditional debt relief' from its European creditors at least until 2040 to allow its finances to recover, in a new debt sustainability analysis (DSA) report.

Summary of the report: Greece continues to face a daunting fiscal consolidation challenge. After seven years of recession and a structural adjustment of 16% of GDP, Greece has only managed to achieve a small primary surplus in 2015, and this due to sizeable one-off factors. This is still far away from its ambitious medium-term primary surplus target of 3½% of GDP. Reaching this target still requires measures of some 4½% of GDP. Low-hanging fruit have been exhausted, and the scope for new significant measures is limited.

• Primary Source

ESO: Background information: Eurogroup meeting, Brussels,9 May 2016 http://www.europeansources.info/record/eurogroup-meeting-brussels9-may-2016/

Kathimerini, 20.05.16: US Treasury Secretary Lew urges flexibility in Greek debt talks http://www.ekathimerini.com/208833/article/ekathimerini/news/us-treasury-secretary-lew-urges-flexibility-in-greek-debt-talks

IMF: News, 19.05.16: Transcript of a Press Briefing with Gerry Rice, Director, Communications Department http://www.imf.org/external/np/tr/2016/tr051916.htm

Carnegie Europe: Strategic Europe, 19.05.16: Kicking the Greek Debt Crisis Down the Road http://carnegieeurope.eu/strategiceurope/?fa=63629

Deutsche Welle, 23.05.16: IMF urges 'unconditional' Greek debt relief http://dw.com/p/1ItI1

The Guardian, 23.05.16: IMF tells EU it must give Greece unconditional debt relief https://www.theguardian.com/business/2016/may/23/imf-warns-eu-bailout-greece-debt-relief

IMF: Publications, 23.05.16: Greece : Preliminary Debt Sustainability Analysis-Updated Estimates and Further Considerations http://www.imf.org/external/pubs/cat/longres.aspx?sk=43915.0

EurActiv, 24.05.16: IMF report puts pressure on Greece’s EU creditors http://www.euractiv.com/section/euro-finance/news/imf-report-puts-pressure-on-greeces-eu-creditors/

Politico, 23.05.16: Berlin resigns itself to Greek compromise http://www.politico.eu/article/greece-imf-germany-angela-merkel/

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