International Monetary Fund board says Greece needs further debt relief

The board members could not agree on whether Greece should be meeting the strict targets set by its European lenders Getty Images

Yields on two-year Greek debt jumped to nearly 9.7 per cent this morning, the highest since last summer, after the International Monetary Fund (IMF) admitted its executive board was divided over the issue of the country's bailout.

Greece's economy is expected to grow 2.7 per cent this year, up from 0.4 per cent in 2016, the fund said.

"IMF involvement is necessary", Jeroen Dijsselbloem, Dutch finance minister, told lawmakers on Wednesday in The Hague.

The IMF chief said the Fund tried to be a "ruthless truth-teller" in its latest audit of Greece's economic policies released on Tuesday.

But deep divisions remain, with Greece refusing to implement new labor reforms and the International Monetary Fund at odds with European lenders over the extent to which the country's massive debts should be eased.


But in its recent assessment the Washington-based organisation said Greece is unlikely to meet budget targets in place under the bailout programme.

Since the financial crisis left it buried in debt and unable to issue bonds in financial markets, Greece has relied on global bailouts.

The IMF said most of its board members agreed that "despite Greece's enormous sacrifices and European partners' generous support, further relief may well be required to restore debt sustainability".

Its Eurozone creditors have forced it to make painful budget cuts that caused a deep recession.

Now the government of Greece has consistently reduced its levels of spending on infrastructure and other essential services, as the country struggles to meet its debt repayment obligations. The impasse needs to be bridged by the time euro-area finance ministers meet on February 20, their last gathering before European elections make an agreement politically hard. The IMF forecasts that government debt will reach 160% of gross domestic product (GDP) by 2030, and would "become explosive thereafter".

Related News:

  • Over 70 arrested at Dakota Access Pipeline protest site, camp cleared

    The tribe is trying to steer protesters to a March 10 event called the Rise with Standing Rock Native Nations March on Washington. But earlier this week, acting Secretary of the Army Robert Speer ordered the corps to allow the work to go ahead.
    1M Brits ask government to cancel Trump state visit

    1M Brits ask government to cancel Trump state visit

    This isn't the first time that Donald Trump's visitation rights have been debated in Parliament. It's not yet clear if climate change activist Prince Charles will meet with Donald Trump.
    GOP senators oppose DeVos as education secretary

    GOP senators oppose DeVos as education secretary

    Lisa Murkowski of Alaska and Susan Collins of ME both said on Wednesday that they would oppose DeVos's nomination. Al Franken (D-MN) no Democrat is going to support DeVos.
  • USA  officials delay interviews with asylum seekers in Australian camps, report says

    USA officials delay interviews with asylum seekers in Australian camps, report says

    Australia's offshore detention camps have often been criticized by the United Nations watchdogs for harsh conditions. Rintoul said protesters wanted refugees in offshore detention at Nauru and Manus Island to be brought to Australia.
    Trump praises black icons: He does know Frederick Douglass is dead, right?

    Trump praises black icons: He does know Frederick Douglass is dead, right?

    One such man was Frederick Douglass , the ex-slave turned abolitionist, author, suffragist, editor and diplomat. Douglass, who died in 1895, is getting a lot of attention and praise this week for doing an "amazing" job.

    Kim Kardashian Stolen Jewelry Melted Down for Pennies

    Kim Kardashian West also has yet to comment on the recently released confession of the robbery's mastermind. It detailed the events that took place on the day she was robbed inside her hotel room.
  • Afghan civilians killed, 7920 wounded in 2016: UNAMA

    Afghan civilians killed, 7920 wounded in 2016: UNAMA

    The deaths themselves were a 2 percent drop from 2015, but the injuries jumped by six percent. The group caused 899 civilian casualties, up from 82 in 2015, according to the report.
    Gavin McInnes speaking at NYU, protests underway

    Gavin McInnes speaking at NYU, protests underway

    NY police officers stepped in to form a barrier between the protesters and McInnes supporters. Once McInnes was in the building, protesters followed and chanted as he tried to speak.
    Ayew brothers help Ghana reach semis, Egypt edge Morocco

    Ayew brothers help Ghana reach semis, Egypt edge Morocco

    But instead it is Egypt who progress to the last four, their bid to win the title for a record eighth time still very much alive. They are the sons of Ghana football legend Abedi "Pele" Ayew , ranked among the greatest African footballers of all time.
  • Final Fantasy XV Broke Even With Development Costs On Its Launch Day

    Final Fantasy XV Broke Even With Development Costs On Its Launch Day

    Kujiraoka would go on to acknowledge the demand for the game in the West and even the notice it gets from the esports crowd. In short, we are now unable to ready anything that has enough value to meet everyone's expectations.

    Trump gives generals 30 days for new anti-ISIS strategy

    Throughout his presidential campaign, Donald Trump vowed to "knock the hell out of ISIS" were he to win the presidency. President Trump signed an executive order blocking people from seven Muslim countries from entering the U.S.
    Trump Calls Top Senate Democrat's Emotional Response to Muslim Ban 'Fake Tears'

    Trump Calls Top Senate Democrat's Emotional Response to Muslim Ban 'Fake Tears'

    John McCain is exactly right. "The orders make us less humanitarian, less safe, less American", Schumer added. The White House began a damage control effort on Sunday evening that continued into Monday.


Most liked

Democratic senator denies that Democrats plan to filibuster Gorsuch
Judge Gorsuch, I think is just not something that's going to be good for the American people", Shaheen said on the Senate floor. Another podcast on the nomination, at Advice and Consent , discusses how the confirmation debate over Gorsuch will be framed.

PCCW shares surge on sale of United Kingdom broadband business to CK Hutchison
The deal will help Three grow its spectrum capacity which might come in handy for launching 5G services in the future. This spectrum can not now be used for mobile services, but has been earmarked as possible bands for 5G services.

Explosion outside Supreme Court in Afghan capital, casualties feared
Shortly after they were put to death a suicide bomber attacked a minibus carrying court employees during the morning rush hour. The BBC also reported that the bomber targeted the auto park of the court compound, reports say.

Twenty-First Century Fox, Inc. Reveals 14% Rise In Q2 Earnings
The return on equity ( ROE ) measures the company's profitability and the efficiency at which it is generating those profits. Twenty-First Century Fox, Inc . has earnings per share of $ 1.53 and the earnings per share growth for this year is -63.90%.

Netanyahu asks Prime Minister May to consider new sanctions on Iran
She said she believed there was "much more we can do" and it was important to look at how "we can build that relationship". The Number 10 summit was May's first face-to-face with Netanyahu since she became prime minister in July.

Kate Middleton Would Have Better Valentine's Plans Than Everyone Else
Instead, the Duchess will be heading to Cambridgeshire outside of London, England, to meet air cadets at an air force base. Heads Together is a charity which is backed by the royals and aims to promote mental well-being in young people .

Viola withdraws himself from consideration for secretary of Army
On Friday, Viola announced that he would be withdrawing his name from the nomination, according to ABC News . Viola, a Brooklyn native, served in the 101st Airborne Division during Vietnam.

Police seek man who threw homemade explosive into California Cheesecake Factory
The Cheesecake Factory , police, and the Federal Bureau of Investigation did not receive any threats, Gourdikian said. Gourdikian says investigators believe the device was "made to make a loud bang, which it did".

Clarification requested on border tracking system in Trump immigration order
It was Kelly's first visit to the border since being tapped to lead one of the largest government agencies in the country. As for all the controversy and protest that has swirled around the construction of the wall, Kelly acknowledges, "Mr.

DeVos nomination in trouble as 2 senators announce dissent
According to The Hill , Murkowski spoke after Collins and said she too would be unable to vote for DeVos' confirmation. They also said they're concerned with DeVos' lack of knowledge about a 40-year-old law governing special education.

Why Nigeria's January manufacturing PMI fell to 48.2 - CBN
Companies indicated that higher demand for raw materials was testing the capacity at vendors and leading to shortages of certain inputs.

Senate Committee Approves Pruitt As EPA Head
Pruitt has sued the EPA repeatedly to prevent it from enforcing the law and even from relying on clear scientific evidence. Suh urges the full Senate to reject Pruitt's nomination because he's "uniquely unfit for the job".

Ulster County Building to Highlight 'National Wear Red Day'
Your youth also doesn't excuse you from more "traditional" heart issues like heart attacks , clogged arteries, and strokes. Volunteers knitted the red hats themselves and have delivered them to metropolitan hospitals for the babies to wear.

Volkswagen beats Toyota, taking first spot in sales
U.S. rival General Motors reports its figures next week, but it is expected to lag behind both the Japanese and the German firms. What's more, VW CEO Matthias Mueller recently said the company would no longer make volume leadership one of its primary goals.

Trump adds Steve Bannon to national security team
His expanded role in the White House was followed on Saturday by the hashtag, #StopPresidentBannon , trending on Twitter . John McCain, chairman of the Senate Armed Services Committee, speaking on Sunday's Face the Nation .