Greece favors IMF withdrawal from rescue loan program


Save Story
Leer en español

Estimated read time: 2-3 minutes

This archived news story is available only for your personal, non-commercial use. Information in the story may be outdated or superseded by additional information. Reading or replaying the story in its archived form does not constitute a republication of the story.

ATHENS, Greece (AP) — Greece's left-led government said Tuesday it would welcome a decision by the International Monetary Fund to pull out of the country's bailout program, which is bogged down in disagreements on further spending cuts.

Government spokesman Dimitris Tzanakopoulos accused the Washington-based fund of making "irrational demands" in the negotiations, which he said Greece wants wrapped up as soon as possible.

Also Tuesday, the finance ministry released preliminary budget data according to which the primary surplus for 2016 — which excludes debt servicing costs — was more than double the initial target.

Greece hopes a deal with European creditors and the IMF will boost its battered economy, give it access to the European Central Bank's bond-buying stimulus program and, later, to international debt markets.

The IMF participated in Greece's two previous bailouts, but is still deliberating whether to finance the current, third program signed in 2015. It says fiscal targets agreed upon between Greece and the Europeans are too optimistic.

"What the IMF decides is its own concern," Tzanakopoulos said. "But what concerns us is that it should take its decision as soon as possible and not create pointless delays" in the bailout talks.

"If the IMF wishes to not participate with financing in the Greek program, that would be a good development not just for Greece but for all of Europe," he added. "We have always said that Europe is able to handle its problems on its own."

Tzanakopoulos also said the better-than-expected 2016 budget execution figures included boosted tax revenues, which he said showed that efforts to fight tax evasion are paying off.

According to the finance ministry, the 2016 primary surplus was 4.4 billion euros, compared to a budget forecast for 2 billion euros. The figures are calculated on a modified cash basis, and differ slightly from the final budget data.

Greece has committed to budget surpluses in coming years, under the terms of its bailout program. The country has depended on rescue loans since 2010.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Most recent Business stories

Related topics

Business
The Associated Press

    STAY IN THE KNOW

    Get informative articles and interesting stories delivered to your inbox weekly. Subscribe to the KSL.com Trending 5.
    By subscribing, you acknowledge and agree to KSL.com's Terms of Use and Privacy Policy.

    KSL Weather Forecast