Cyprus Mail
Greece

Greece says IMF demands are undermining an accord

Protesters from the Communist-affiliated trade union PAME take part in a demonstration against a set of planned pension reforms in Athens

Greece accused the International Monetary Fund on Wednesday of undermining efforts to broker an accord over the country’s funding options, after talks to unlock fresh bailout aid stalled.

Days of on-off talks between Greece and its international lenders have hit a snag over creditors who want Athens to introduce contingent measures in case it misses fiscal targets to reach a primary surplus by 2018.

At stake are more than €5bn in financial aid needed to pay IMF loans maturing in June and July.

Athens would be willing to discuss the introduction of a mechanism to automatically cut spending, government spokeswoman Olga Gerovasili said.

“The IMF is making demands which go beyond what was agreed. These demands undermine efforts by both the Greek government and European institutions,” Gerovasili said.

Athens says its laws prevent it from legislating on a hypothetical event, but it has offered to discuss a mechanism of automatic cutbacks in the event of a fiscal fallout.

“The insistence of the IMF is affirmed by its refusal to accept the proposal of the Greek government to introduce a fiscal correction mechanism…..and that despite the fact that it met all preconditions set by the Eurogroup last week,” Gerovasili said, referring to euro zone finance ministers.

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