IMF Refutes Claims of Possible Exit from Greek Bailout Program

The Director of the International Monetary Fund’s (IMF) Communications Department, Gerry Rice, denied claims by Reuters on October 9 that the IMF would not be directly participating in the Greek bailout program. On October 8, Reuters reported that the IMF will not be involved in any future European bailout ventures, as it considers the objectives of such programs to be unrealistic without offering any significant debt relief. Sources cited by Reuters have stated that the IMF’s new role will be less official and will be mainly acting as an advisor and offering technical assistance, and that its involvement will not consist of direct funding. Allegedly, the IMF made this decision after German Finance Minister Wolfgang Schäuble was unwilling to discuss the possibility of a restructuring of the Greek debt.

However, Gerry Rice was quick to refute Reuter’s October 9 report. Contrary to Reuters’ claims, Proto Thema reports that the IMF pledged to support the Greek program and also stressed the importance of meeting targets, the need for structural reforms, and sustainable financing. The newspaper added that an IMF delegation will be visiting Athens over the next few days to evaluate the current situation. To further emphasize his statement, Mr. Rice also referenced remarks by  Poul Thomsen, the director of the IMF’s European Department, who confirmed the organization’s continuing involvement in the Greek bailouts. Even though the IMF refuted the claims made by Reuters, it is evident that the situation is still very delicate. The IMF delegation’s upcoming visit to Athens will likely be critical to future negotiations regarding Greece’s bailout program and the IMF’s eventual role in it.