The eurozone’s debt relief plan for Greece has hit serious trouble within days as banks and pension funds balk at fresh losses, raising fears that the package could unravel before a deadline in mid-December.
by Ambrose Evans-Pritchard
The International Monetary Fund said on Thursday that it would not disburse funds under its part of the EU-IMF package unless the eurozone delivers on a bond “buy-back” scheme, which is supposed to cut Greece’s burden by 10pc of GDP and is deemed crucial for restoring long-term viability.
If the IMF withdraws, Finland and Holland will also pull out of the programme. “This has become a really big problem,” said Raoul Ruparel from Open Europe.
The dispute comes as Moody’s said the EU-IMF deal to unlock €44bn in bail-out payments to Athens merely papers over cracks and does little to alleviate Greece’s “extreme economic and social fragility”.