Cancellation of existing IMF program for Greece paves way for new memorandum
Government sources and the International Monetary Fund itself have confirmed that the program agreed in 2012 has been cancelled at the request of Greek authorities.
According to an officer at the Ministry of Finances, the joint decision was taken in order to avoid administrative charges related to the program. The cancellation of the IMF program at the request of Greek authorities has also been confirmed by IMF press officer Andreas Adriano.
The cancelled program, which was introduced as part of the second Greek bailout, was to expire at the end of March 2016, with the government having already requested a new one.
Should an agreement be reached, the IMF will compose its own Memorandum of Economic and Financial Policies (MEFP) which will have to work in tandem with the European Commission’s Memorandum of Understanding (MoU).
As with the previous programs, the IMF’s memorandum typically has more strict provisions that affect those in the European memorandum.