IMF won’t join Greek bailout before reforms, debt relief

Greek Prime Minister Alexis Tsipras addresses a meeting of his ruling radical left Syriza party's central committee in Athens, on Thursday, July 30, 2015. Tsipras called for an extraordinary party congress in September, after Greece is expected to seal a new bailout deal with its international creditors, in a bid to end a rebellion by his hardline lawmakers that is threatening to topple his coalition government. (AP Photo/Thanassis Stavrakis) Greek Prime Minister Alexis Tsipras addresses a meeting of his ruling radical left Syriza party's central committee in Athens, on Thursday, July 30, 2015. Tsipras called for an extraordinary party congress in September, after Greece is expected to seal a new bailout deal with its international creditors, in a bid to end a rebellion by his hardline lawmakers that is threatening to topple his coalition government. (AP Photo/Thanassis Stavrakis)

By Associated Press July 30, 2015 2 min read

WASHINGTON (AP) – The International Monetary Fund official cannot participate in another Greek bailout until Greece and its creditors make difficult decisions on economic reforms and debt relief, a fund official said Thursday.

Briefing reporters on condition of anonymity, the official said Greece needs to commit to reforms and creditors must provide debt relief – extending loan terms or reducing the debt outright – that will allow Greece to pay its bills over time. “It’s always been clear the IMF will only come in once these conditions are in place,” he said, suggesting that point is months away.

Still, the fund is participating in ongoing debt talks.

In Athens, a government official refused to comment directly on the IMF’s participation in the third bailout.

“The IMF’s position on debt sustainability is not new. (IMF managing director Christine) Lagarde has referred to this dozens of times,” the official said, asking not to be identified because the talks are ongoing.