The IMF considers the current restructuring plan insufficient to fix the debt crisis in Greece..Greece spends bailout money on weapons!
The International Monetary Fund considers the current restructuring plan insufficient to fix the debt crisis in Greece, Germany’s Der Spiegel magazine said, citing internal IMF documents.
The IMF constantly monitors financial situation in the crisis-hit country makes up for about a third of the 110-billion euro ($140 billion) bailout package for Athens, with the rest being provided by eurozone countries.
The fund is also expected to contribute to a new bailout package of 130 billion euro ($178 billion), agreed in October last year. Along with the direct loans to stabilize budget, the package also envisages financing a debt writedown by private investors and recapitalization of local banks.
However, Der Spiegel said, the current budget austerity program will not work and will have to be modified.
The IMF document proposes three possible solutions for Greece: the introduction of new austerity measures, a writedown of more than 50 percent by private creditors or greater loan support from the European Union.
The document echoes a statement made by an adviser to German Finance Minister Wolfgang Schaeuble, who said on Saturday that the planned 50 percent writedown of Greek government bonds held by private creditors as part of a debt swap won’t be enough to make the country’s debt sustainable.
Greece has a debt of more than 350 billion euros ($448 billion) and faces its fifth straight year of recession.
As Greek standards of living nose-dive, loans to households and businesses shrink still further, and Troika-imposed PSI discussions continue, there is one segment of the country’s infrastructure that is holding up well. In a story on Zeit Online, the details of the multi-billion Euro new arms contracts are exposed as the European reach-around would be complete with IMF (US) and Europe-provided Greek bailout cash doing a full-circle into American Apache helicopters, French frigates, and German U-Boats. As the unnamed source in the article notes: “If Greece gets paid in March the next tranche of funding (€ 80 billion is expected), there is a real opportunity to conclude new arms contracts.” With the country’s doctors only treating emergencies, bus drivers on strike, and a dire lack of school textbooks and the country teetering on the brink of Drachmatization, perhaps ourprevious concerns over military coups was not so far-fetched as after the Portuguese (another obviously stressed nation), the Greeks are the largest buyers of German war weapons. It seems debt crisis talks perhaps had more quid pro quo than many expected as Euro Fighter commitments were also discussed and Greek foreign minister Droutsas points out:”Whether we like it or not, Greece isobliged to have a strong military”.
the IMF is admitting what we knew before..its not enough and its not fixed..the greeks are saying no to more pain..and the money they have been given they have spent on war weaponry from..the same countries who helped organise the borrowing!!..one big jerk off circle..disgraceful