Will the IMF throw the spanner in the works? – as I feared and Dr Schäuble hoped?

IMF cannot join Greek rescue, board told

… reports Peter Spiegel from Brussels in today’s Financial Times. He adds:“Some Greek officials suspect the IMF and Wolfgang Schäuble, the hardline German finance minister, are determined to scupper a Greek rescue despite this month’s agreement to move forward with a third bailout.

In a private teleconference made public this week, Yanis Varoufakis, the former finance minister, said he feared the Greek government would pass new rounds of economic reforms only for the IMF to pull the plug on the programme later this year.

“According to its own rules, the IMF cannot participate in any new bailout. I mean, they’ve already violated their rules twice to do so, but I don’t think they will do it a third time,” Mr Varoufakis said. “Dr Schäuble and the IMF have a common interest: they don’t want this deal to go ahead.”

The key issue, of course, is not so much whether the IMF will be part of the deal – a typical fudge could, for instance, be concocted with the IMF providing ‘technical assistance’ to an ESM-only program.

The issue is whether the promised debt relief which, astonishingly will be discussed only after the new loan agreement is signed and sealed, will prove adequate – assuming it is granted at all. Or whether, as I very much fear, the debt relief will be too little while the austerity involved proves catastrophically large.

22 thoughts on “Will the IMF throw the spanner in the works? – as I feared and Dr Schäuble hoped?

  1. How anyone can still believe that this farce has anything to do with reality is beyond me.
    The Germans keep pretending that they want the IMF in while anyone in their right mind must see that they’re only doing it so that they can put the blame for grexit on somebody else. This is getting more disgusting by the minute.

    • @Ralph Musgrave:

      Why don’t you shut the f*ck up you lousy racist!


      Why do you allow this moron to post on your blog instead of blocking him?

    • Cheating, lying and stealing – you mean they´re human beings? Ever take a close look at London, old chap? Can you spell LIBOR? old chap. Makes the Greeks look like amateurs in the cheating, lying stealing game, eh old chap? BTW, congratulations on your SIX friends on Facebook!

    • Own currency requires central bank to be controlled by the state. In Greece the central bank is under full control of the euro-dictatorship. That’s what the Greeks afraid. As for the rest of your comment, it is only aligned with the usual flat, simplified and disorientating mainstream media propaganda. The old saturated narratives. They don’t work anymore. Don’t bother.

  2. The question is what interests does Schauble serve and what interests IMF represents. The bending of the rules by IMF is obviously not an initiative by seasoned banker-bureaucrats that would not risk their next promotion – pension on such “initiatives”. I am not so much concerned with the “servants” as with those actually controlling the game. I agree with Yianis on the prospects of rug pulling. I think that there will only be peace when the gas and oil reserves are secured. Alas Greece as we know it will not exist. Hellenism will and that’s a problem in the long run.

  3. The IMF never belonged in this clownish show orchestrated by Ayatollah Schauble. The IMF needs to go. Schauble must find 50 Bil. euros or so to reimburse the IMF and undertake its unfair burden in this European comedy called aid to Greece (aka euro’s bailout which btw euro currency is undergoing a severe internal devaluation since Merkel has decided to steal from all the savings of European citizens in order to promote her disgusting trade surpluses).

  4. The IMF has said before there will need to be debt relief to make it sustainable – which is a condition for the IMF to give support. So that the IMF demands debt relief isn’t a surprise to me. Also, they shove the responsibility back to the European Union, right where it was before the Germans asked the IMF to assist.

    Now it’s up to the European Union to fully show their true colors…

    • The IMF is sick and tired in providing political cover for psychopathic Schauble and his antics. All Schauble has done since the start of this crisis is to purposely disregard the IMF technical knowledge of debt relief for austerity and instead insist for austerity only simply to match the brutality and barbarian instincts of the invalid person that he is.

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s