View more on these topics

IMF attacks EU over Greek bailout

Greece-Greek-Flag-700x450.jpg

The International Monetary Fund has criticised the bailout deal offered to Greece by the Eurozone.

A memo sent to EU authorities at the weekend and obtained by the FT urges debt relief for Greece on a scale “well beyond what has been under consideration to date”.

The Greek parliament is due to vote today on a raft of economic reforms agreed over the weekend as a condition of a third bailout worth €86bn over three years.

In the three-page memo, the IMF says Greece’s debt will peak at close to 200 per cent of GDP over the next two years. At the start of the eurozone crisis, Athens’ debt stood at 127 per cent.

The memo argues that some of Greece’s debt must be written off — something eurozone officials have fiercely resisted — for the country’s debt to fall to levels where it would be able to return to the financial markets.

It says: “Greece’s debt can now only be made sustainable through debt relief measures that go far beyond what Europe has been willing to consider so far.”

On Tuesday the IMF said it would not be able to disburse €16.4bn of its own funds that European officials are counting on unless an agreement on debt relief was concluded.

Recommended

Pensions-savings-retirement-piggy bank

Equity release market continues to boom

Equity release lending surged 17 per cent in the first six months of 2015, new research suggests. Figures from equity release provider Key Retirement show retired homeowners cashed in £753m from their properties during the period, up from £641m in the first half of 2014. The total number of equity release plans sold also increased […]

Europe-European-Flags-EU-700.jpg
3

Greece reaches 11th hour deal over EU bailout

Angela Merkel, François Hollande and Alexis Tsipras have reached a compromise deal on Greece after all night talks. The trio of Euro leaders announced in a press conference that a deal has been struck which will be worth €86bn-€87bn over three years, reports the FT. “The decision gives Greece the chance to get back on track […]

The FCA’s five fixes for retirement information

The Financial Conduct Authority (FCA) has started to change the way that people will be told about their pension options. In a recent market study paper, they lay out their final proposals on the information that should be delivered to people approaching retirement and how it should look and feel. During 2015, there will be […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment