IMF rejects report of Greek debt restructuring
The International Monetary Fund rejected reports Saturday that it believes Greece should restructure its massive debt, dpa reported.
An IMF spokesman denied reports by The Wall Street Journal/Dow Jones that the IMF believes Athens' debt situation is unsustainable and must be restructured within the next year.
Managing Director Dominique Strauss-Kahn told reporters Saturday in Washington that so far the IMF is "working with the programme as it has been established."
"We have built the Greek programme, with the government, following the assumption that they really want not to restructure their debt. That's the hypothesis around which the European programme and our support of the programme was built. Nothing has changed, period," he said.
Earlier this week, Strauss-Kahn expressed confidence that Greece is on the right course to economic recovery, provided it has the continued help of the rest of Europe and the IMF.
Greek Finance Minister Georgios Papakonstantinou insisted Saturday in Washington that restructuring was "not on the agenda."
German Finance Minister Wolfgang Schaueble suggested earlier this week in an interview with Die Welt newspaper that Greece might have to renegotiate its debt, prompting investors in Greek government debt to ask on Thursday for a record 13-per-cent return on 10-year government bonds.
Greek Prime Minister George Papandreou on Friday said his country's economic problems will only be solved with deeper structural reforms and not by restructuring its massive debt.
Papandreou made the comments at a cabinet meeting where he presented a midterm package of new austerity measures worth 23 billion euros (33 billion dollars), which will run from 2012-15, aimed at achieving deficit-reduction goals and to try to steady investors' faith in its creditworthiness.