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.