Euro leaders knew of latest IMF debt analysis for Greece
Eurozone decision-makers knew of the International Monetary Fund’s (IMF) latest analysis of Greek debt sustainability already on Saturday, before reaching an agreement on a third bailout for Greece on Monday morning, an EU official said.
The confidential IMF analysis, seen by Reuters, says Greece will need debt relief far beyond what eurozone partners have been prepared to consider due to the devastation of its economy and banks in the last two weeks.
It says Greece’s debt would peak at around 200 percent of GDP in the next two years rather than start falling from next year as expected earlier.
“The numbers, including the 200 percent, were around already on Saturday, IMF chief Christine Lagarde and others knew them before the agreement on the third bailout terms for Greece was done on Monday morning,” the EU official said.