Greece needs a 30-year debt relief including a dramatic maturity extension and annual transfers to its budget, according to a secret International Monetary Fund (IMF) document.
Details of an IMF study of the Greek financial crisis were leaked as Prime Minister Alexis Tsipras struggled to persuade leftist lawmakers to vote for an 11th-hour bailout deal that includes sharp cuts to welfare spending.
The document was seen by Reuters which is reporting that the IMF favors a 30-year grace period on servicing all its European debt, new loans and a dramatic extension of maturities.
Or else they must make annual transfers to the Greek budget or accept “deep upfront haircuts” on existing loans.
The IMF said Greece needs far more debt relief than European governments have been willing to contemplate.
The document is likely to sharpen debate in Germany about whether to lend Greece more money while it will be seen by many in Greece as a vindication of the government’s plea for sweeping debt relief.
A Greek newspaper called the report a slap in the face for Berlin.
In an interview with state television, Tsipras said that although he did not believe in the deal, there was no alternative but to accept it to avoid economic chaos.
Tsipras caved to German demands for sweeping welfare reform and stringent conditions by other eurozone creditors including the sale of Greek assets, paving way the for the deal to be signed at the last minute.
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