We’ve lost count of which one it is, but Greece has another bailout deal. Like all the ones that came before it, it is supposed to be the last one, a final injection of other people’s money in exchange for wringing a little more lifeblood from the Greek people, in advance of having a little chat about the actual problem, which is the fact that Greece’s sovereign debt is almost twice its GDP.
The agreement sets the conditions for talks, possibly by the end of May, with creditors on a deal to lengthen the maturity and lower payments on Greece’s debt.
That won’t quite do it, according to the IMF. Since the German insistence that the profligate Greeks suffer for their financial insolence, GDP won’t be rising any time soon. And that means that debt’s gonna have to come down somehow.
A deal between Greece and its international lenders for more fiscal reforms settles one issue that has blocked the International Monetary Fund's financial participation in the bailout, but debt relief is still needed, an IMF spokesman said on Tuesday….
In a joint statement with Greece's European lenders, the IMF said: "the Greek authorities have confirmed their intention to swiftly implement this policy package. This preliminary agreement will now be complemented by further discussions in the coming weeks on a credible strategy for ensuring that Greece's debt is sustainable."