Schaeuble: ESM would possibly take over IMF's supervisory role in Greek program

Friday, 13 January 2017 11:36

Berlin is considering the prospect of tasking the European Stability Mechanism (ESM) with the supervisory role in the Greek program, in case the IMF decides to end its participation in the bailout, according to powerful German FinMin Wolfgang Schaeuble.

The latter's statements were carried by Suddeutsche Zeitung on Thursday.

"In case the Fund leaves, then European (creditors) may choose a solution within the European monetary system, one that then French finance minister Christine Lagarde and I had proposed at the beginning of the Greek crisis. In this case, however, Europeans will have to impose what was agreed to, obviously more effectively," he was quoted as saying.

In response to the looming prospect of a continued IMF participation in the Greek bailout, Schaeuble said the current program mandates the IMF participation.

"If we continue alone, then we will  have to better guarantee the agreements ... This role could be assigned to the ESM," he added.