IMF demands debt sustainability for Greek bailout

Frankfurt

THE International Monetary Fund (IMF) said on Tuesday that it would remain involved in Greece's bailout only if eurozone leaders agreed on a plan that would make the country's debt manageable for decades to come.

The aggressive stance sets up a stand-off with Germany and other eurozone creditors, which have been reluctant to provide additional debt relief.

The IMF, in a report released publicly on Tuesday, proposed that eurozone creditors should consider letting Athens write off part of its huge debt or at least make no payments on its eurozone debt for 30 years.

A new rescue programme for Greece "would have to meet our criteria", a senior IMF official told reporters on Tuesday, speaking on condition of anonymity. "One of those criteria is debt sustainability." The official spoke as the IMF disclosed a report that it submitted to eurozone officials before a weekend meeting to consider the new bailout deal for Greece. The eurozone officials did not adopt the IMF'…