Row sparks fears of crisis within a crisis

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Row sparks fears of crisis within a crisis

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How much is the debt crisis in Greece highlighting a crisis within a crisis? International lenders clashed over how Athens can bring its debts down to a sustainable level leading fears their public spat could lead to the financial troubles flaring up again.

Commentators are asking what will happen if another country was to seek a bail out in the future.

The difference of opinion between Christine Lagarde of the IMF and Jean-Claude Juncker who chairs the Eurogroup of finance ministers over the Greek debt crisis has been described as a, “sharp exchange”.

Analysts believe if the IMF were to walk away from the bailout the eurozone would have to contribute extra funds and its reputation in the financial markets would be severely damaged. Equally, if the IMF were to back down its authority would be damaged.

It is a scenario that for the moment is conjecture but the row has brought it into focus.