The line of the government Trump for Greece

A new landscape is being formed in the issue of the Greek debt and the IMF’s attitude, as well as after the appointment of Christine Lagarde…
with Angela Merkel, the chessboard came to be added to new issues.
Paul Thomsen “throws the ball” to the Europeans for specific commitments regarding debt relief and brings the issue of the reduction of the primary surpluses, while at the same time, the government of Donald Trump have made it clear that Greece is Europe’s problem”
The message in the blog posting of the Fund by the chief economist Morris Ομπσφελντ, the head for Europe Paul Thomsen and the head of the legal department of the Fund, Sean Hagan, is clear.
The IMF “fly the ball” to the Europeans for specific commitments regarding debt relief and brings the issue of the reduction of the primary surpluses.
Although the resolution entitled: “Facing Sovereign Debt: the view of The IMF”, in general in the countries facing the problem of debt sustainability, there are direct and indirect references to the subject of Greece. In particular, photographed the need to specialise from Europe quickly measures to alleviate the Greek debt and to be realistic the targets set for the primary surpluses.
“To conclude, when state debts are not sustainable and if it is not available free of charge funding, the only means to improve a bad situation is a degree of debt relief in conjunction with a powerful but reliable adjustment program”, report to the executives of the IMF, adding: “to pretend that they can be repaid debts that are not εξοφλήσιμα, all you do is weaken the adaptation efforts of the country’s debt, driving eventually all the parts in larger losses than if they had experienced fast facts”.
“There may be circumstances, where official bilateral creditors prefer to put the full implementation of the programme as a condition for the actual provision of debt relief. Such an approach may be justified, for example, when there are concerns regarding the historic performance of economic adjustment of a member. In these cases, however, the commitment to provide the necessary debt relief – although it will depend on the implementation of the programme should be made at the beginning of the programme and should be quite reliable’, and added: “the credibility of the commitment you will need to take into account the specificity of the ways in which you will become debt relief. A too general commitment would increase the uncertainty, among other things, and in the markets, with regard to the provision of the relief debt, thereby undermining the chances of success of the programme. In addition, while we can agree to put the achievement of particular policy objectives of the χρεώστριας country as a condition for debt relief, these objectives must be realistic in order to remain a credible strategy of debt”.
In the analysis it is emphasized that the responsibility for the analysis of the sustainability of debt is the IMF and not assigned. “Because of the debt sustainability analysis is a central in the process of decision-making (the Fund), this work remains the responsibility of the IMF. No way to assign it to someone else” refers to.
In the case of the ongoing discussions with Greece, we have seen “that is more suitable to the framework focuses on annual funding needs, primarily because the partners of Greece in the Euro zone have chosen to offer to provide debt relief through a very significant expansion of ωριμάνσεων (loans) and a reduction of interest rates, rather than through clipping of the beginning”, report to the executives of the IMF.
Government Trump: Greece is a European issue
New data for Greece created them in the first interview of the new american minister of finance Steven Μνούτσιν giving the first samples of the policy of Donald Trump.
As reported in the Wall Street Journal, the american minister described problem of Europe, the crisis in the Greek economy, adding however that “we are working with our European counterparts and the IMF to resolve it”.
In this publication it is stated that the government Trump could offer cover to the IMF so that it can remain stable in a tough position against intense German pressure for the participation of the fund in the program.
“We have conversations with our European partners and the IMF in this regard, but obviously the prime concern of our european partners”, said the minister of Finance of the united states.
IMF: advance specification of the restructuring measures
Insists the International Monetary Fund on the ex ante specification of the measures for the restructuring of the public debt of Greece, as a condition to contribute financially to the Greek program with the representative J. Rice clarifies that the terms and conditions (reforms and relief of debt) in the Fund remain stable.
“Before the IMF arrives in a position to commit to participation in the program, you will need to have the debate on the policies and provide debt relief, and beyond the debate to have reliable commitments which will, we trust,” said Rice at a briefing for journalists
The description of the measures for the debt should be made immediately after the debate on the reforms, even if their implementation be later explained.
He revealed that the Greek issue was addressed in the communication of the Lagarde with the American ministry of finance last Tuesday, but that the head of the IMF had recently contact with Alexis Tsipras on the evaluation.
Mr. Rice stressed that it is a condition of the participation of the Fund for the ex-ante commitment and expertise of the measures of debt relief, although these will be applied later.
The representative of the IMF revealed that Greece was one of the issues addressed by the telephone communication of Christine Lagarde with the American secretary of the Treasury Steven Μνούτσιν last Tuesday, while confirming that the head of the IMF had recently contact and with Greek prime minister Alexis Tsipras on the assessment.
Asked about if there has been from the Fund any study on the impact of a Greek exit from the euro, the Jerry Rice has not answered clearly and simply to declare that it was and remains a priority for Greece to stay in the eurozone and the priority of the other countries of the euro area to maintain it in this.