Thursday, April 14, 2016

Time For A Reality Check In Greek Bailout Says IMF

Greece, out of sight and out of mind for the majority of investors, will be revisited. The Euro's structural flaws make shielding the euro zone from a broader contagion a pipe dream supported by opinions rather than the message of the market. If any EU member, including Greece, exits, devalues, and begins to recover economically, higher-profile members will be pressured to follow as the business cycle transitions from prosperity to liquidation in 2016. Bottom line, few are interested in Greece right now. That will change.

Headline: IMF urges shake-up of Greek bailout

Last year’s deal on an €86bn bailout to prevent Greece from leaving the eurozone may need to be completely renegotiated with more realistic fiscal targets for the International Monetary Fund to take part in the rescue, its chief has warned.

Christine Lagarde said that forcing Athens to achieve the demanding budget surplus targets written into the bailout would require “heroic” efforts by the Greek people, given the deep austerity measures required. She added that maintaining such surpluses well into the future is “highly unrealistic”.



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