IMF stays tough on debt relief as it prepares to return to Greece
Maurice Obstfeld and other top officials stress fund’s demands on debt sustainability
International Monetary Fund (IMF) officials are once again emphasising the need for debt sustainability in any lending programme, as the fund prepares a new mission to Greece.
Lending cannot go ahead if the debt service proves too burdensome for a government to cope. "Any assessment of debt sustainability needs to be underpinned by realistic – rather than heroic – assumptions regarding future growth prospects," write Sean Hagan, Maurice Obstfeld and Poul Thomsen in a blog post on February 23
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