Suddenly,
the bad theatrical performance by Greece's creditors has ended
ingloriously after the recent meeting between the IMF head, Christine
Lagarde and the German chancellor, Angela Merkel. As Deutsche
Welle reports:
The
International Monetary Fund (IMF) chief Christine Lagarde met with
German Chancellor Angela Merkel on Wednesday to discuss Greece's debt
crisis.
Lagarde
said after the meeting that Greece's debt needed "significant"
restructuring but that it did not require debt forgiveness from
the Mediterranean nation's creditors, marking an apparent shift of
her policy view.
Germany
and other eurozone lenders have categorically dismissed the notion of
debt forgiveness, previously placing it at loggerheads with the
global financial mechanism.
Indeed, the
supposed disagreement between the IMF and the eurozone so far was
that the Fund was calling for a debt relief for Athens or it will
refuse to part-fund latest bailout. Just remember what the IMF
supported
less than a year ago, up until recently:
The
International Monetary Fund has called for “upfront” and
“unconditional” debt relief for Greece as it warned that without
immediate action the financial plight of the recession-ravaged
country would deteriorate dramatically over the coming decades.
In
a strongly worded assessment, the IMF said that there was no
prospect of Greece meeting the draconian terms of its current bailout
plan and that interest payments on the soaring national debt would
eat up 60% of the budget by 2060 in the absence of debt forgiveness.
The
debt sustainability analysis by the Washington-based Fund said Greece
should have longer to pay, have the interest rate on its loans fixed
at 1.5%, and that its creditors should make debt relief automatic
once the bailout programme ends in 2018.
Compare the
two statements above and decide what is the level of reliability of
IMF.
It is more
than obvious that the decisions are taken not on a technical basis,
but on a political basis, which is irrelevant of Greece's recovery.
This new development fully confirms what the blog supports constantly
regarding the Greek debt crisis. As noted
in April 2016:
We have seen
another bad theatrical performance by the Brussels bureaufascists of
the European Financial Dictatorship (EFD)
and the IMF economic hitmen in the Greek drama. The representatives
of the neoliberal Feudalism pretend that they have different
positions concerning the unsolved puzzle of the Greek debt, while in
reality, they do not care at all about "solving" it, but
only to complete the neoliberal experiment in Greece to the last
detail.
[...]
Poul Thomsen
and Delia Velculescu, head of the IMF mission to Greece, have been
caught thinking the possibility of the IMF to stage a Draghi-type
“credit event” that could force Greece to the edge of bankruptcy,
using the pretext of the Brexit referendum, according to recent
WikiLeaks
revelations.
The dialogues between Thomsen and Velculescu prove only
the anxiety of the IMF to finish the Greek experiment according to
the timeline, that is before the end of 2016. In reality, there is no
different goal with the EFD representatives. The supposed different
positions between EFD and IMF concerning the debt relief, or, the
level of primary surplus target, are irrelevant. The supposedly
different positions projected by the media, are aimed to disorientate
the public, as always ...
We would be
laughing with the neoliberal clowns and their bad theatrical
performance if they hadn't destroy an entire country.
Germany MASSIVE DEBT was forgiven TWICE after it caused TWO WORLD WARS and if you count the 1870 war its three in less than 100 years....if it keeps on this mafia mentality it MUST BE GIVEN A LESON AGAIN ...maybe by STOPPING PURCHASING ALL AND ANY GERMAN PRODUCTS....
ReplyDeleteSomething they have already experienced in the past.
DeleteDeutsche Welle continues:
ReplyDelete"What will be needed is not a haircut if the reforms are done, but a significant extension of maturity, a significant interest rate capping, and that will have to be discussed in greater detail later on as progress is made on the reform front," Lagarde said.
Problems solved for Lagarde's term by kicking the can down the road once more.