Troika divided on solutions to save Greece. The International Monetary Fund pushes for restructuring of Greek debt in the hands of European countries, while The EU and the ECB would like to give more time to the government of Antonis Samaras to apply the austerity measures agreed in exchange for aid. To reveal the conflict, which would explain the recent and sudden suspension of the Troika mission in Athens, are Greek sources interviewed by the Reuters agency.
“The problem is not between the IMF and Athens, but between the IMF and the EU – explained a Greek official involved in the negotiation – Europe wants more time to understand what will happen with Spain and Italy or even wait the German elections in 2013. The Fund wants Europe to work out a comprehensive and immediate solution to its problems”.
"It is clear to the IMF that Greece will need more money or more time or both," stressed a troika source.
The Greek Finance Minister Yannis Stournaras, has asked for two more years to implement the measures, explaining that such an extension would require additional funding of 13 or 15 billion, which could be covered through the issuance of short-term securities, a lowering of interest rates on current loans or a rollover of bonds held by the ECB, a hypothesis that Frankfurt ruled out cleanly yesterday.
However, the IMF wants Europe to bear losses on its pre-existing credits, a path that is not viable - explained a source from the Greek government - because "no one else agrees". Officials who attended the latest meetings between the Greek government and the troika spoke of a high-tension session in which Stournaras threatened to resign if the Fund's head of delegation, the Danish Poul Thomsen, asked for further cuts. “Thomsen is no longer happy with anything,” said another source.
"The last time the troika was here we agreed to cut salaries and pensions between 5 and 5,5 billion, we made between 7,5 and 8 billion and it's still not enough."
