Primary surpluses in Greek program should be reasonable, Lagarde says

The primary surpluses that will be decided for the Greek bailout program should be more reasonable because they will determine the size of debt restructuring that will be required to make it sustainable, the head of the International Monetary Fund, Christine Lagarde, said in a press conference in Washington DC on Thursday.

Lagarde reiterated that the IMF will have to examine the primary surpluses in the Greek program before it decised on its debt sustainability, which constitutes one of the two conditions set for its participation in the program.

The second condition is the implementation of a reliable reform package. On this front, Lagarde admitted that has been made, adding however that open issues remain in taxation and social security which must close when the mission chiefs will return to Greece.