Germany: IMF’s participation in Greek program is included in ESM’s legal texts

Germany: IMF’s participation in Greek program is included in ESM’s legal texts

The participation of the International Monetary Fund (IMF) in Greece’s bailout program is not just a practice that has paid off, but is also specified in the ESM’s legal texts, as well as in the statement released by the Eurogroup in August, German government spokesman said on Wednesday.

Steffen Seibert was responding to a question on whether Berlin considers the Fund’s participation in Greece’s third economic package as necessary. He also noted that the Eurogroup’s text was approved by both the IMF and the Greek government.

Asked in a separate press conference whether yesterday’s statements by Finance Minister Wolfgang Schaeuble were a threat towards Greece, German finance ministry spokesperson Friederike von Tiesenhausen said: “The government's position is as recorded in the statement of the Eurogroup on 14 August – we want the participation of the IMF in the current program.”

She also added that the relevant Eurogroup document includes the term “indispensable”. “Therefore, everything is clear.”

Asked about possible consequences if the IMF refused to participate in Greece’s program, Von Tiesenhausen referred to the timetable and said the EU is still disbursing the first tranche of the loan provided by the program. “We have to accept that not everything will be completed this year - which would have allowed the formal evaluation process to begin - but we will go into next year. The IMF itself has made it absolutely clear that it will announce then, after this review, its decision. I do not want to speculate now, let's wait,” she added.

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