The financial ministers in Greece have become bored and frustrated. With the eurozone resisting the use of the IMF to help relieve the fiscal problems Greece faces on the basis of pride, Greece has highlighted its position.
Greece has never ruled out the use of IMF finds and it has been treading very carefully between the two. However there is a change in the air and the IMF looks set to be the main protagonist.
Germany has warmed further to the idea of the use of IMF, not least because it means it can adopt the ‘no bail-out’ clause. With other countries realising that any type of European Monetary Fund could not be put in place in time for Greece as well as noting that the IMF has credible experience in this field, the Washington-based institution looks like it could be called up.
However Greece would need around 30bn euros and it is unclear whether the IMF would stump up all of this cash itself. This would lead to a situation similar to that faced at the start of the issue – could bonds underwritten by Germany be used? How much extra funding would be needed to fill the gap the IMF leaves. This would also lead to many conditionalities imposed on Greece by both the IMF and the eurozone.
Greece is yet to receive the funding it clearly needs while the eurozone plays politics with Washington.