Regling: «No political mood for debt haircut"

There is “no political mood in the EU or the IMF for a Greek debt haircut” said European Stability Mechanism (ESM) Managing Director Klaus Regling. Greece was expecting to receive further debt relief from other Eurozone members, as well as the International Monetary Fund (IMF) in late 2014, especially after the country demonstrated a budgetary surplus. Speaking to “Realnews” newspaper, Klaus Regling said however that lenders are “not even sure there is indeed a need for such small interventions”, and added that the IMF would continue to help Greece with its financial problems until the first months of 2016. Meanwhile, Troika’s supervision upon Greece’s economic adjustment under the bailout program, is still needed. “The Troika will continue to exist as is and conduct quarterly checks but with the IMF’s loan disbursements at stake, the fund will have the driver’s seat”, said Regling. Even if Greece could decide to be freed of IMF’s audits, such a move is unlikely as there is no way of knowing for sure that the country’s budget will be able to withstand it, Regling believes.

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