The IMF's stance in forthcoming negotiations to conclude the third review of the current Greek bailout program - the third in succession - remains a question mark for the leftist-rightist coalition government in Athens.
By T. Tsiros
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The IMF's stance in forthcoming negotiations to conclude the third review of the current Greek bailout program - the third in succession - remains a question mark for the leftist-rightist coalition government in Athens.
The last IMF-related development on the Greek program came last month, when the Washington DC-based Fund announced a "precautionary" credit line for still bailout-dependent Greece, which it called a "Stand-By Arrangement" worth 1.6 billion euros. However, no further developments, at least by the IMF, are expected until late September, and then probably after the German federal election.
Nevertheless, two demands by the IMF are expected to be tabled in the course of negotiations to conclude the third review, namely, further boosting Greek systemic banks' capitalization and the standing issue of Greek debt sustainability.
However, both the Greek side and European creditors (EU Commission and ECB) are against a further capitalization of Greek banks.
In terms of the latter, debt sustainability, the Fund's position remains unchanged, as the latter wants more radical measures, such as debt relief.
A decisive factor in any developments will be a possible visit to the country by IMF Managing Director Christine Lagarde. Reports of just such a visit surfaced on Monday, but were not confirmed by either the prime minister's office or the finance ministry. The reports claimed that Lagarde has been invited to visit the country by the Greek president.
Prior to deliberations on the third review of the current bailout, creditors must determine next month whether Athens has fulfilled another bevy of "prior actions" in order to receive an 800-million-euro chunk of bailout money left over from the first tranche disbursed in July.