IMF’s Lagarde Disappointed, Will Continue To Engage Greek Officials
The International Monetary Fund (IMF) Chief Lagarde said Sunday she is disappointed with the inconclusive outcome of talks with Greece, but underscored the IMF’s commitment to continue to engage with the Greek authorities.
The IMF chief said in a statement that she had briefed the IMF executive board on the inconclusive outcome of the discussions with Greece, and is disappointed with it.
She stressed that the IMF is willing to continue talks with the Greek authorities, if Greece can implement “appropriate structural and fiscal reforms supported by appropriate financing and debt sustainability measures.”
In the statement, she said she welcomed the statements of the Eurogroup and the European Central Bank (ECB) to make full use of all available instruments to preserve the integrity and stability of the Euroarea.
“The IMF will continue to carefully monitor developments in Greece and other countries in the vicinity and stands ready to provide assistance as needed,” said Ms. Lagarde in the statement.
Greece will be in arrears to the IMF if it fails to make US$1.7-B of debt repayment due on 30 June.
Greece’s 5-year financial crisis took its most dramatic turn to date Sunday, with the prime minister announcing Greek banks will remain shut indefinitely and restrictions will be imposed on cash withdrawals.
The decision came on the recommendation of the Bank of Greece, Prime Minister Alexis Tsipras said during a televised address to the nation. He did not say what types of capital controls would be imposed.
The developments have thrown into question Greece’s financial future and continued membership in the 19-nation shared Euro currency, and even the European Union.
For the past 2 days, Greeks have been rushing to ATMs to withdraw money across the country following Mr. Tsipras’ sudden weekend decision to call a referendum on creditor proposals for Greek reforms in return for vital bailout funds.
The government is urging Greeks to vote against the proposals, arguing that they are humiliating and that they would prolong the country’s financial pain.
The ECB has said it could reconsider its decision on credit levels.
“We continue to work closely with the Bank of Greece and we strongly endorse the commitment of member states in pledging to take action to address the fragilities of euro-area economies,” ECB chief Mario Draghi said.
Yannis Stournaras, governor of the Bank of Greece, said the bank would “take all measures necessary to ensure financial stability for Greek citizens in these difficult circumstances.”
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