Greece screwed

IMF stuns Europe with call for massive Greek debt relief

The International Monetary Fund has set off a political earthquake in Europe, warning that Greece may need a full moratorium on debt payments for 30 years and perhaps even long-term subsidies to claw its way out of depression.

“The dramatic deterioration in debt sustainability points to the need for debt relief on a scale that would need to go well beyond what has been under consideration to date,” said the IMF in a confidential report.

Greek public debt will spiral to 200pc of GDP over the next two years, compared to 177pc in an earlier report on debt sustainability issued just two weeks ago.

The findings are explosive. The document amounts to a warning that the IMF will not take part in any EMU-led rescue package for Greece unless Germany and the EMU creditor powers finally agree to sweeping debt relief.

  • Norman_In_New_York

    Is there anyone out there who still thinks the Eurozone was a good idea?

    • I’m sure Germany is kicking itself.

      • dance…dancetotheradio

        Excuse me while I move these goalposts just a bit farther back.

  • Fran800

    The Eurozone was a disaster.

    Nigel Farage’s recommendations:

    Peter Morici points out that the Euro was devalued for German economy, pulled down by the PIIGS countries, and this helped German exports. But Euro was over-valued for Greece and the other PIIGS, thus destroying their weak economies. Interesting comment.

    Finally, what I have been worrying about all along. Greek economy is terrible, but one way or another, this will pass. The real problem is that this small country has been subject to demographic assault even greater than Italy. Vdare thinks Tsipras, a Communist, will use this to destroy the Greek nation. And this is forever.

    • Maurixio Garcia Sanchez

      And Harper wants to join the team,that means any disaster over there it will be feel of here .

  • The__Hammer

    No one should be shocked at this. The IMF has been saying for a while now that it is impossible for Greece to pay off all their debt. The Eurotrash zone is living in denial.

    • Shebel

      The IMF survives by keeping Countries in Debt.
      That is what this very Private bunch does.
      Go broke Greece.
      Time to bring this Global Dominance to an end.

  • Shebel

    Why does anyone even care about what the IMF says ?
    What is the IMF?

    • Minicapt

      This time of year, French.


  • Jim Horne

    The concept of too big to fail is what you get when the outcome of reckless financial management is to protect the lenders and the borrowers from the consequences of their decisions.

    In the end the humble taxpayer is the backstop that elites use to remedy their own greed. As long as the game remains fixed in favour of the financial elites the social fabric of society will be at risk of unravelling.

    We need more people like Mark Carney who aren’t afraid to speak truth to power.

    Mark Carney: Inclusive Capitalism Creating a Sense of the Systemic

  • Hard Little Machine

    The IMF and the World Bank aren’t creditors. Easy for them to say. The IMF is an aid agency that’s typically used for developing economies or as they call them ’emerging’ to forfend capital expenditures for structural improvement. It’s not supposed to be a creditor of last recourse.

  • Maurixio Garcia Sanchez

    The best medicine for Greece is to go its own,they will have the freedom of no taxes and retire at whatever age they want.