IMF warns Greece needs debt extension, may require writedown

[WASHINGTON] The International Monetary Fund warned on Thursday that Greece would need an extension of its European Union loans and a large debt writeoff if it grows more slowly than expected and economic reforms are not implemented.

The IMF warning in a preliminary draft of its latest debt sustainability report came as Greece readies for a Sunday referendum on an international bailout deal that Prime Minister Alexis Tsipiras has urged voters to reject.

The Washington-based institution, which is part of a "troika" that includes the European Commission and European Central Bank that is overseeing the bailout, said that even if Greek policies came back on track, loans made by Europe "will need to be extended significantly" and that the country would need further concessional financing.

REUTERS

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