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IMF attacks EU over Greek bailout

Business Desk |
Update: 2015-07-15 01:40:00
IMF attacks EU over Greek bailout

DHAKA: The International Monetary Fund has attacked the bailout deal offered by eurozone leaders to Greece.

The creditor said Greece's public debt had become "highly unsustainable" and it needed relief from its debts, reports BBC.

The BBC's economics editor Robert Peston said the criticism was savage. The IMF suggested options including writing down the debt - a move most fiercely resisted by creditors.

The Greek parliament must pass four pieces of legislation on Wednesday.

It is the first requirement of the deal offered after hours of negotiation in Brussels on Monday.

The measures - which face resistance from Prime Minister Alexis Tsipras' own MPs - include taxation increases and pension curbs.

Greece owes about 10% of its debt - €1.6bn (£1.1bn) - to the IMF.

It has missed two deadlines for repayment to the fund and is the first EU country ever to do so.

The BBC's economics editor says the IMF's assessment makes it much harder for Mr Tsipras to persuade the Athens parliament to back the measures needed in Wednesday's votes.

It brings into question the validity of the reform measures demanded by the eurozone and endorses the kind of debt write-offs the Greek public have been arguing for, he adds.

BDST: 1140 HRS, JULY 15, 2015
RS

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