Search ForexCrunch

The IMF released a report  Greece needs debt relief and a new aid package. Not only was this report off the  negotiations table, but the IMF admitted on a call that it was forced to publish it due to a leak.

It also added that it would not sign up to any new deal that does not include debt restructuring. This revelation came today, after Greece’s Varoufakis insisted on debt restructuring and said he preferred to cut an arm off than sign such a deal, after Greece had already  defaulted to the IMF and as banks are closed for the fourth day in Greece. Why did the IMF hide this?

Here is the tweet from the Guardian’s Alberto Nardelli:

Greek PM Alexis Tsipras said a debt  restructuring offer was never all the table – something we already knew. Germany was always opposed to this?

Why did the IMF align with the EU instead of following its own rules? Maybe they did not want to publicly admit failure with the original 2010 bailout. Varoufakis said it is hard to admit you are wrong, when referring to the big misses in the IMF projections for Greece.

Or was it because the IMF would like to the see the current Greek government toppled? The IMF was demanding extreme austerity from Greece, and Greece refused. But one needs to think that if Greece had been offered harsh austerity but with debt restructuring,  perhaps they would have accepted it?

I don’t like conspiracy theories and Greeks certainly have a big share in the blame during all the years, including now:  from not handling corruption, not making reforms and mismanaging the negotiations.

However,  it doesn’t seem that the creditors  negotiated in goodwill.

In the  meantime, Greek banks are running out of cash. Reportedly, some ATMs only allow a withdrawal of 50 euros instead of 60, as 20 euro notes  are not available anymore.

Greek crisis – all the updates in one place

In our latest podcast we feature a  Greferendum preview, NFP review and more

Follow us on Sticher.