IMF chief says Greece needs debt restructuring

PanARMENIAN.Net - Head of the International Monetary Fund Christine Lagarde has warned that the IMF is adamant that Greece needs debt relief - and it won’t join its bailout programme until this is tackled, The Guardian reports.

During her interview with European reporters, Lagarde said "if the Greek debt is not sustainable in accordance with the IMF’s rules and on the basis of reasonable parameters, we will not participate in the program.

Asked whether the staff of the IMF is now convinced that the debt is not sustainable as it is, the IMF chief said:

"Based on the debt sustainability analysis, we will determine how much debt needs to be restructured. But there is no question in our mind that a degree of debt restructuring is needed.

The Greek government, which has more than 7 billion euros ($7.5 billion) in bond payments due in July, has balked at implementing mandated reforms to its energy and labor markets while also resisting IMF calls for additional pension cuts.