International Monetary Fund Managing Director Christine Lagarde has insisted that any new bailout program for Greece requires significant restructuring of the cash-strapped Eurozone nation’s massive debt load.
During an online press conference on Wednesday, Lagarde reiterated her view that any new plan for Greece had to include significant restructuring of the country’s debt by the European Commission and the European Central Bank (ECB).
“Fiscal policies, structural reforms, financing and debt restructuring are four key legs for a Greek solution,” said Lagarde, adding that she was focused more on how Greece acted than what people said about the reforms that creditors pressed for.
In the run-up to the current negotiations, Greek officials had demonized the IMF as “criminal” for pushing austere policies on the debt-stricken nation during the previous two bailouts and some had said they did not want the Fund to be part of any new rescue program.
With the Greek government under pressure to implement more austerity reforms in return for a third bailout program, Lagarde stressed it was the actions that counted and not the political rhetoric coming out of Athens. “It’s deeds, not creeds,” she said.