Saturday, November 17th 2012 - 23:09 UTC

IMF questions plan to restructure Greek debt: “pls reality, not wishful thinking”

An agreement among Greece's international creditors on reducing its large debt pile should be “rooted in reality and not in wishful thinking,” the head of the International Monetary Fund said ahead of a tense meeting with European leaders.

Christine Lagarde cuts short Asian visit to face European leaders

Cutting short a visit to Asia to attend a Eurogroup meeting on Tuesday in Brussels, Christine Lagarde, the IMF managing director, said it was important that an agreement provide a lasting solution to Greece's debt to avoid prolonged uncertainty and further damage to the Greek economy.

“I am always trying to be constructive but I am driven by two objectives,” she said in an interview, “to build and approve a program for Greece that is solid, that is convincing today, that will be sustainable tomorrow and that is rooted in reality and not in wishful thinking.

”The second objective is to maintain the integrity, credibility and quality of advice that we are giving, not for the Fund itself, which obviously is a concern of mine, but to lend that to the Europeans because that is what they are interested in,” she said late on Saturday.

The IMF and Euro zone governments are at loggerheads over how to reduce Greece's massive debt load, which is holding up the release of 31 billion Euros in emergency loans to Athens.

From Buenos Aires Argentine Economy minister Hernán Lorenzino said that if the IMF believes Greece must restructure its debt, “what are they going to do then with the European ‘vulture funds’ (or holdouts)?”

Lorenzini quoted extracts from a piece by Ian Tayller a finance journalist who writes for The Wall Street Journal and Dow Jones Newswire and refers precisely to the holdouts and the controversy that will erupt, as is happening with Argentina.

He said it was crucial ‘to isolate speculative factors from the real economy financing” and described it as a ‘global challenge’. He also praised the fact that France will ban high-frequency trading (HFT) amid its upcoming banking reform.

“France is also reforming its capital markets, separating financial trading activities from real economy operations” he said and emphasized that the end of economic speculation should be a “global challenge.”

And from Rome former Italian PM Silvio Berlusconi called for a change in economic policy after what he called a “disastrous” year of austerity under the technocratic government of Mario Monti.

The 76 year-old billionaire's latest attack adds to a series of often contradictory comments he has made in recent weeks that have deepened the political uncertainty before the next election, which is expected to be held in April next year.

Berlusconi's centre-right People of Freedom (PDL) party is expected to choose its candidate to run for prime minister after a primary on Dec. 16. It has been deeply divided over whether or not to stick with Monti's economic program.

“The data after a year of technocratic government is disastrous and so I think there absolutely has to be a change in this economic policy imposed on us by Europe and above all by the hegemony of Germany,” Berlusconi told reporters.


14 comments Feed

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1 Ayayay (#) Nov 17th, 2012 - 11:23 pm Report abuse
It's nice that she can pull her weight to help them get a haircut. The IMF stopped loaning last month to Greece themselves, so she's sitting in on talks with Germany, the Dutch, etc.
2 British_Kirchnerist (#) Nov 18th, 2012 - 12:01 am Report abuse
Greece should learn from Cristina
3 Spainexpat (#) Nov 18th, 2012 - 07:39 am Report abuse
@2 BK “Greece should learn from Cristina” What? from her new book?

10 Easy Steps to destroy your Economy and Isolate Your Country!
4 yosoy (#) Nov 18th, 2012 - 10:35 am Report abuse
BK your comments on this are so nonsensical and ironic I reckon you must be an anti Kirchnerist with a really sarcastic sense of humour....
5 willi1 (#) Nov 18th, 2012 - 10:46 am Report abuse
If lagarde would act as strict against ck and her gang as she does against the EU for Greece, it would help a lot to bring ck back on a legal track to pay her bondholders still beeing unpaid.
the next deadline in december 15 set by her 6 months before will guaranteed prolongued again for further three months.
6 jkw (#) Nov 18th, 2012 - 11:05 am Report abuse
slurp ugh, slurp ugh, slurp ugh. the sound of IMF sucking on a dying host...
7 ptolemy (#) Nov 18th, 2012 - 02:48 pm Report abuse
Foot in Mouth Disease...
8 Anbar (#) Nov 18th, 2012 - 07:24 pm Report abuse
9 Ayayay (#) Nov 18th, 2012 - 08:35 pm Report abuse
Of course Greece wants to choose default like Argentina!!!

INSTANTLY, it doubles the price of heating oil, wheat, vehicles, gasoline, netbooks, juice...

When @2 was once, finally asked, for a substancive convo about governance, his two leadership quals were panache & style.

Tightening the border: “Make no mistake, we want Argentines to stay at home”-Timerman, that's not “panache”. NOT COOL.

Having to go from empty pharmacy to empty pharmacy and not finding your loved one's meds, fu** your style. Naked is nicer anyway.

Tl;dr: Cristina's clothes are imported.
10 DanyBerger (#) Nov 19th, 2012 - 06:25 am Report abuse
Default is the only logical solution for Greece of course bankers wouldn’t like that.
Of course would not be painless but always works.

Worked for Britain in 1600 (they crashed the Florence bankers at that time) and for all countries in istory that couldn’t afford to meet its payments.

65% to 70% haircut also recommended and don’t forget to put a clause there telling that not ruling court with some Thomas Griesa judge or Shapiro friend will be allowed in any dispute.

That’s it...
11 Captain Poppy (#) Nov 19th, 2012 - 04:25 pm Report abuse
What can cuntina teach to be ostracized and become a deadbeat pariah in 5 easy steps?

Bristish KIrchner = Fatsomo the Fat Fuck Kirchner, also know as the bastard son of christina kirchner and the argentina congress. She is not really sure who is dad, but because of fatsoimo's birth date, she has it narrowed down to 15 senators and hannibal “lecter” kirchner is the leading man so far.
12 Ayayay (#) Nov 20th, 2012 - 10:44 pm Report abuse
Maybe Argentina can send them some natural gas? They've run out of it for nationwide electricity
13 DanyBerger (#) Nov 21st, 2012 - 10:09 am Report abuse
@Captain Poppy

Why are you so concern about Argentina to become a pariah state as you say?

You are not living in wonderful superpower USAMEX?

BTW Have you got some gasoline or still waiting?

There is a Burrito and Tacos rationing also and that is the case for what you are so scared?

Don’t worry mate you can always will be able to dance salsa and Reggaeton like this...
14 Captain Poppy (#) Nov 21st, 2012 - 12:56 pm Report abuse
I don't live in NYC/North Shore Jersey.....storm hit areas are the only gas lines.
I've stated my concerns and POV long ago, have you forgotten during your retooling process?
Bummer about the Tacos....I do love my taco
Sorry....I don't do

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