IMF Praises Greek Authorities

cut_greek_debtThe situation and prospects of global economy, the emerging markets; the stalemate in the U.S.; debt crisis in the Eurozone (especially in Greece), as well as the balance of power in decision making for the global economy, were the focus of discussions during the Annual Meetings of the International Monetary Fund and World Bank, whose work completed today in Washington.

IMF expressed concern for “destabilization” of emerging markets, and stressed that the central banks of developed economies should act carefully in the field of monetary policy in order to avoid destabilization of emerging markets.
The Steering Committee of IMF stated that the global economic recovery continues, with improvements in developed economies, but with moderate growth in emerging markets. However the danger still lurks, that the crisis in the U.S. budget and debt poses serious risks.

IMF called US to make decisions as soon as possible so that short-term budgetary uncertainties can be confronted. IMF predicted that many EU countries in the Eurozone will emerge from recession in 2014, but underlined that it is necessary to advance in structural reforms and notably in the areas of labor relations, services and trade.

In addition, IMF praised the Greek authorities for significant progress which has been achieved so far. In particular, IMF chief Christine Lagarde called European partners to honor the commitments they made in November 2012, to further reduce the debt in case Greece would manage to achieve primary surplus.

European Commissioner Olli Rehn declared that a new Greek debt cut is unnecessary and stressed that final decisions will be taken next year.

The statement of a member of the Executive Board European Central Bank, Jörg Asmousen stated that IMF talking about the money of others, caused many reactions. At the same time he added that IMF is just a small lender which has ensured that loans to Greece will be repaid at the most.

Head of European Department of IMF, Reza Moghaddam said it is still early to assess the sustainability of Greek debt.