Recently the IMF Managing Director Christine Lagarde said in the Letter to Greece Prime Minister Alexis Tsipras where Alexis asked about the IMF’s position regarding the program negotiations with Greece.
The ongoing negotiations are that IMF still a good distance away from having a coherent program that “I can present to our Executive Board. I have on many occasions stressed that we can only support a program that is credible and based on realistic assumptions, and that delivers on its objective of setting Greece on a path of robust growth while gradually restoring debt sustainability” inked Lagarde.
IMF says further, otherwise it would fail to re-establish confidence, with the implication, among others, that Greece would soon again be forced to adopt yet more measures. Of course, any speculation that IMF staff would consider using a credit event as a negotiating tactic is simply nonsense.
Christine inks, “As you and I have discussed several times, including recently on the telephone, I have been consistent in pointing out that, if it were necessary to lower the fiscal targets to have a realistic chance of them being fully met, there would be an attendant need for more debt relief. In the interest of the Greek people, we need to bring these negotiations to a speedy conclusion.”
Finally, the IMF conducts its negotiations in good faith, not by way of threats, and we do not communicate through leaks.