Despite mounting pressure from all sides, the IMF refuses, for now, to participate in the financing of the country’s €86 billion bailout program, if Greece does not commit to further reforms and the EU does not come up with specific details for a debt relief.
A few weeks ago, Greece and its European partners reached an agreement “in principle” over further pension and tax reforms for the disbursement of the next tranche of the program.
Greece has about €7 billion in debt repayments due in July and all sides are pushing for a way out of the deadlock well before that date.
Reforms and debt restructuring
In an interview with Die Welt, Christine Lagarde insisted that the Greek economy could achieve a primary surplus of 1.5% of GDP in the long run rather than 3.5% as the EU institutions believe.