Greece and its lenders have made some progress towards an agreement on reforms, but not enough to unlock new loans or start talks on vital debt relief, the head of the International Monetary Fund Christine Lagarde said on Friday.
“There is more work to be done. We are determined to continue the work. We’re not there yet,” Lagarde said on arriving for a meeting of euro zone finance ministers.
“There is more to be done and a debt sustainability to be agreed upon as well. It’s critically important,” Lagarde said.
Germany and several other countries, including Finland and Slovakia, oppose debt relief for Athens, arguing it is not necessary. The IMF believes that without it, Greek debt will not be sustainable.
“That programme has to walk on two legs. There has to be sufficient reforms and we are making progress on that front, some progress, and there has to be debt sustainability at the end of the day and on that front we have not yet started the discussion,” Lagarde said.