BackGreece says IMF agrees to talk on new rescue loans
Greece says IMF agrees to talk on new rescue loans
PremiumGreek finance minister Evangelos Venizelos. Photo: Bloomberg
Athens: The International Monetary Fund (IMF) has given approval for talks on new rescue loans to Greece, the Greek finance minister said on Thursday as the country was locked in critical debt-saving talks.
“After a waiting period of several weeks, the green light has been given for the country to submit to the IMF a request to begin procedures for the new programme," finance minister Evangelos Venizelos told Parliament.
“At an unofficial meeting of the IMF governing board yesterday in Washington, IMF members were given approval to begin talks with the Greek government on the new programme."
The negotiations with the Institute of International Finance (IIF), which is leading the talks on behalf of private creditors, are aimed at cutting about €100 billion ($128 billion) off Greece’s total debt of more than €350 billion.
Venizelos on Thursday said Greece wanted a “radical and generous" debt cut of a voluntary nature, but noted that all bondholders had to participate for the operation to produce a 50% writedown.
“It must be of a voluntary nature, and lead to complete participation, namely 100% participation," the minister said.
An agreement with banks and other institutional investors would open the way for a separate funding deals from the IMF and EU, and help calm market fears of a wider crisis within the 17-nation euro zone.
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