Saturday, August 15, 2015

IMF calls to write off part of the Greek debt – BBC Russian

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chairman of the Eurogroup Jeroen Deysselblum and Minister of Finance of Greece Euclid Tsakalotos satisfied with the agreement reached

The International Monetary Fund urged the ministers of the euro area debt relief Greece, after last Friday an agreement was reached on a new financial aid package that Athens will receive from international lenders .

The head of the IMF Christine Lagarde welcomed the agreement, but warned that Greece will not be able to cope with debts on their own and the country need further assistance.

“Greece can not repay debts only through their own actions “- said Lagarde.

Under the new agreement, international lenders agreed to provide Greece with 86 billion euros over the next three years in exchange for tax increases and spending cuts.

According to the BBC correspondent NEWS Adam Fleming in Brussels, euro zone finance ministers will consider the possibility of writing off a portion of Greek debt this fall.

The first part of Greece allocated tranche of 26 billion euros will go to recapitalize banks (10 billion) and partly on repayment of the loan the European Central Bank in the amount of 3.2 billion euros before August 20.

According to the head of the European Commission, Jean-Claude Juncker, the agreement with creditors designed to clearly and accurately show that Greece remains in the euro area.

The deal was given a hard time to the Greek Prime Minister Alex Tsipras, who had to face a serious discontent in the ranks of his own party.

More than 40 deputies, members of his party, “Syriza”, voted against the adoption of the conditions under which The European Union has agreed to provide financial assistance to Greece, but Tsipras failed to convince members of the opposition to vote for a new deal with the EU.

The Minister of Finance of the Netherlands Jeroen Deysselblum, who chaired the meeting of the Eurogroup on Greek debt, said that the new conditions will allow Greece the economy cope with the major problems.

He also noted the importance, particularly for the IMF write-off of part of the Greek debt, but Germany is still strongly opposed to this measure, which will cost lenders billions of euros.

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