(Greece) – The International Monetary Fund has said that they hope to reach a deal with Greece to help with their debt relief that could occur around Christmastime by the of 2016. The International Monetary Fund hasn’t committed to a debt deal with Greece during this third bailout because the organization has said that the predictions surrounding Greece’s economic performance under the current bailout have been too optimistic. They have said that they don’t believe the conditions surrounding the current bailout are sustainable for the country.
Pierre Moscovici, the European Economic Affairs Commissioner, said that he hopes that the IMF will become involved with the bailout. The IMF has struggled against this current bailout deal, saying that it questions Greece’s abilities to pay off the loan balances in the time allotted. Although the international creditors for Greece’s bailout have said that reducing or forgiving the debt isn’t possible, they are willing to negotiate about interest rates and when the loans need to be paid back.
Moscivici has also said, “I hope that we will be capable of finding a good deal by Christmas, by the end of the year. And that will show that everything — and I mean everything — is fully on track.It is in the interest of all parties … that the IMF is fully on board. Because it adds credibility and usability and visibility to the program. So what I urge, what I plead, what I advocate is that we enter into this virtuous cycle.”
Greece has been in a recession since before the first bailout in 2010. Since then, the country has required two additional bailouts. In this latest one, Greece received the first payment a few weeks ago and will use the money to pay off loan balances due to the European Central Bank and the International Monetary Fund. Although the IMF has not been involved with this third bailout, the IMF’s chief has said that the bailout can succeed without their involvement.