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A
new leak by the IMF concerning the Greek debt issue supports that
Greece is close to technically default on a payment to the IMF in
early June.
From
Channel 4 News:
Channel
4 News understands Greek negotiators made clear last week that the
€1.56bn owed to the IMF in June, beginning with a payment on 5
June, cannot be paid without a deal.
The
IMF memo confirms that there has been “some recent progress”
in negotiations between Greece and its lenders: on VAT reform, tax
collection and regulations that would make it easier for Greek
companies to go bust and be restructured.
But
the tight timetable, and growing tension between the IMF and the
Europeans, mean next week’s Euro summit in Riga looks like the
last chance to do a deal before Greece technically defaults on a
payment to the IMF in early June.
[...]
The
IMF names the outstanding issues as: pension reform, deregulating
the labour market, and the re-hiring of 4,000 former civil
servants as the issues preventing a deal. The document
acknowledges progress on labour reform “in the past”,
signalling that the rehiring and pensions issues are what stand
between Greece and a deal this week.
But
the document reveals critical differences between the EU, ECB and
IMF that could lead to a collapse of the negotiations. Basically,
the EU is looking for a deal that papers over the cracks and takes
the Greek banking system off life support, while the memo confirms
the IMF’s own rules do not allow what it calls a “quick and
dirty” outcome.
But
the “progress” has triggered a major row behind the scenes
between the EU and the IMF.
|
This
is another proof that the IMF insists dogmatically on the neoliberal
catastrophic policies although they have failed in the past.
The
supposed "disagreement' between EU, ECB and IMF aims to persuade
public that these institutions are not aligned behind specific
interests.
The
leak enhances the scenario of Default without Grexit which has been described in the related
article.
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also:
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