Greek debt not sustainable, Lagarde says

Greek authorities must carry out more reforms to the country’s pension system and in the way Greek banks are managed, Christine Lagarde, head of the International Monetary Fund said on Thursday.

Lagarde, presenting a Global Policy Agenda at the fund’s annual meeting with the World Bank in Peru, reiterated that the Greek debt was not sustainable and stressed that the Fund’s view over the issue has not changed since last July when the IMF released its debt sustainability report.
She underlined that the IMF was willing to help Greece following an official request made by the Greek government, but noted that a necessary precondition to approving any IMF financial help to Greece was that an adjustment programme should be based on two legs: the first is adopting and voting all significant reforms, such as reforms in the pension system and in bank governance. The second leg refers to debt sustainability and all initiatives necessary to ensure that the country’s debt was on a sustainable path.
Greek Finance Minister Euclid Tsakalotos will discuss these issues during a meeting with Lagarde in Lima.