Bloomberg
IMF’s Lagarde Says Not ‘Terribly Positive’ on Greece’s Progress
January 27, 2012, 7:50 AM EST
International Monetary Fund Managing Director Christine Lagarde said that she’s not satisfied with the progress Greece has made on structural reform.
“We’re not terribly positive about what has been done but we want to put together a program for the country,” Lagarde said in an interview with Bloomberg Television from Davos, Switzerland.
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JANUARY 27, 2012, 6:35 A.M. ET
Lagarde: Greek Debt Reduction Must Be 'Significant'
LONDON—The key goal of debt talks between Greece and its bond holders should be to ensure the government has a debt equivalent to 120% of gross domestic product by 2020, the head of the International Monetary Fund said Friday.
Speaking to Bloomberg Television in Davos, Switzerland, Christine Lagarde said she isn't optimistic or positive about the recent implementation of the government's economic program.
Ms. Lagarde said it isn't the IMF's role to decide how great a burden institutions or creditors should bear in ensuring that Greece can return to a sustainable fiscal path.
But she said the debt reduction agreed on by the government and its bond creditors must be "significant," and added that all of the interested parties must ensure that the government doesn't default.
"Everybody has to do what everybody has to do," she said.
Ms. Lagarde said fiscal consolidation is one "prerequisite" for a return to sustainable growth in the euro zone, but that other governments also have their part to play in stabilizing the global economy.
In particular, she urged the governments of Japan and the U.S. to develop "solid" medium-term plans to cut their debts. (Hello? How is Japan to rebuild after the earthquakes & tsunami if they don't go into debt?)
Ms. Lagarde said she is confident talks in coming weeks with international governments will lead to a boost in the IMF's lending power of $500 billion, although she declined to provide a deadline. (Well, here we go again - RV WEEKS away!)
Corrections & Amplifications
Christine Lagarde said she isn't optimistic or positive about the recent implementation of the Greek government's economic program. An earlier version of this article incorrectly said she isn't optimistic or positive about recent progress toward a funding package and economic program that would enable the government to resolve its debt problems.
IMF’s Lagarde Says Not ‘Terribly Positive’ on Greece’s Progress
January 27, 2012, 7:50 AM EST
International Monetary Fund Managing Director Christine Lagarde said that she’s not satisfied with the progress Greece has made on structural reform.
“We’re not terribly positive about what has been done but we want to put together a program for the country,” Lagarde said in an interview with Bloomberg Television from Davos, Switzerland.
____
JANUARY 27, 2012, 6:35 A.M. ET
Lagarde: Greek Debt Reduction Must Be 'Significant'
LONDON—The key goal of debt talks between Greece and its bond holders should be to ensure the government has a debt equivalent to 120% of gross domestic product by 2020, the head of the International Monetary Fund said Friday.
Speaking to Bloomberg Television in Davos, Switzerland, Christine Lagarde said she isn't optimistic or positive about the recent implementation of the government's economic program.
Ms. Lagarde said it isn't the IMF's role to decide how great a burden institutions or creditors should bear in ensuring that Greece can return to a sustainable fiscal path.
But she said the debt reduction agreed on by the government and its bond creditors must be "significant," and added that all of the interested parties must ensure that the government doesn't default.
"Everybody has to do what everybody has to do," she said.
Ms. Lagarde said fiscal consolidation is one "prerequisite" for a return to sustainable growth in the euro zone, but that other governments also have their part to play in stabilizing the global economy.
In particular, she urged the governments of Japan and the U.S. to develop "solid" medium-term plans to cut their debts. (Hello? How is Japan to rebuild after the earthquakes & tsunami if they don't go into debt?)
Ms. Lagarde said she is confident talks in coming weeks with international governments will lead to a boost in the IMF's lending power of $500 billion, although she declined to provide a deadline. (Well, here we go again - RV WEEKS away!)
Corrections & Amplifications
Christine Lagarde said she isn't optimistic or positive about the recent implementation of the Greek government's economic program. An earlier version of this article incorrectly said she isn't optimistic or positive about recent progress toward a funding package and economic program that would enable the government to resolve its debt problems.
