One of Greece’s major creditors and Troika member the IMF says the country will need debt relief and extended loans from the European Union.
The IMF says the current scheduling of the debt is unsustainable without strong growth and implemented economic reforms.
The conclusion comes from an IMF analysis conducted last week, before Greece closed banks and defaulted.
The EU will have to find new money, 50 billion euros, but even under the Washington-based Fund’s most optimistic scenario, the debt-to-GDP ratio will still be 140% in 2022.
In its words Greece’s “fragile debt dynamics” meant one option appeared realistic; extend the grace period to 20 years, and the amortization period to 40 on existing EU loans.