IMF to participate in Greek bailout negotiations

Greek government invites International Monetary Fund to join negotiations on Monday

Photo by: AP
Photo by: AP

Updated Jul 28, 2015

The IMF has accepted an invitation to participate in negotiations with Greece’s creditors on Friday and are expected to arrive in Greece during the weekend.

The creditors aim to talk about a third bailout requested by the greek government.

According to the IMF, extended talks will take place amongst greek officials and their European partners in order to decide on a third facilitation to Greece.

Greek Finance Minister Euclid Tsakalotos personally signed the letter in which Greece is asking for a new bailout.

Greece has been struggling with economic problems since 2010 when the Greek government took its first financial assistance from IMF, the European Central Bank and the European Commission.

However, the economic landscape became worse when the country had no way of repaying its debts.

Last month Greece failed to repay another loan payment endangering its position in the European Union. The different scenarios included Greece leaving Europe and going back to its old currency “Drachmas”.

Prime Minister Alexis Tsipras has accepted creditors’ measures despite greek citizens saying no to a referendum addressing the issue held on July, 5.

Tsipras urged Greek people to vote for no, clearly stating his position towards the creditors’ suggestions. Thus, after long negotiations, he agreed to the new austerity measures that include pension cuts and tax raises.

The country is expected to repay a debt of 3.2 billion euros ($3.5 billion) by August, 20 having hopefully completed the negotiations.

Greek government spokeswoman Olga Gerovasili stated that the final decision will be taken on August 18.

"Clearly, the negotiations will be constant until then," she Friday.

In the meantime, Greek banks have risen the ATM withdrawal limit to €420 per week after having been closed for three weeks.

TRTWorld and agencies