Berlin this week again stayed “on cue” in relation to continuing speculation over Greek debt relief in the coming period, with a relevant finance ministry spokesman saying the conclusion of the fourth review of the ongoing program comes first, before any decisions on the former.
The statement by spokesman Dennis Kolberg comes as differences between the IMF and Germany, the Eurozone’s “paymaster”, over the country’s debt load remain resolved, with the margins for the Fund to agree to rejoin the Greek program as a future creditor now very tight.
“There are no pre-commitments or decision,” Kolberg said, adding that beyond conclusion of the current fourth – and last – fiscal adjustment program, the post-bailout era is also under consideration.
The IMF has repeatedly and very publicly stated that it considers Greece’s external debt as unsustainable in the long-term – possibly in the medium-term as well – without specific and generous debt relief. Berlin, on its part, along with several other EZ member-states, insists on a full implementation of reforms and fiscal targets being achieved before broaching the debt relief issue.
