Greece’s debt requires restructuring: IMF
The managing director of the International Monetary Fund (IMF) has called for the restructuring of Greece’s massive debt as the cash-strapped country is trying to present a new proposal to its international creditors to avert an exit from the eurozone.
Christine Lagarde said Wednesday that a new program to prop up Athens’ finances would require its international lenders to restructure debt.
“Greece is in a situation of acute crisis which needs to be tackled,” said Lagarde, who was addressing a conference in Washington.
She added that restructuring can help Greece to have “debt sustainability.”
Lagarde said the fund “remains fully engaged” with Greece to help find a solution to the country’s crisis.
Greece has already defaulted on a €1.5-billion debt payment to the IMF, which, together with the European Commission and the European Central Bank, forms the troika of Greece’s international lenders.