Germany sees no risk of IMF pulling out of Greek aid efforts

BERLIN Fri Nov 16, 2012 6:04am EST

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BERLIN (Reuters) - The German government sees no risk of the International Monetary Fund pulling out of international efforts to help debt-burdened Greece, a German finance ministry spokeswoman said on Friday.

Asked about disagreement between the IMF and the euro zone about extending a deadline for Greece's debt-reduction goals, ministry spokeswoman Marianne Kothe said she was not aware of any danger that this might lead to the IMF withdrawing.

A row between euro zone governments and the IMF over how to make Greece's giant debt mountain manageable is holding up the release of 31 billion euros ($39.5 billion) in emergency loans needed to keep Athens afloat.

"I know of no IMF threat to pull out of the aid programme for Greece," Kothe told a news conference, adding that the Fund would continue "to strive for a solution for Greece".

(Reporting by Gernot Heller and Stephen Brown)

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Comments (1)
dareconomics wrote:
The headline from Reuters leads one to believe that “Germany” does not think that the IMF will pull out of the Greek aid deal.

Actually, an IMF withdrawal is on the table.The Fund is only allowed to disburse aid to countries that remain on a sustainable path to debt reduction, and Greece is not.

The risk of an IMF exit from the process is small. Any sudden moves could create a market panic, and no one wants to be responsible for that disaster.

Even the German spokesperson knows that the risk is there and parses her words carefully:

“I know of no IMF threat to pull out of the aid programme for Greece,” Kothe told a news conference, adding that the Fund would continue “to strive for a solution for Greece”.

She doesn’t know of an IMF threat to withdraw is much different from the headline stating that Germany sees no risk of one. Of course she doesn’t know anything. She is a low level apparatchik in the German Finance Ministry. If she really knew something, she could not be a spokesperson.

dareconomics.wordpress.com

Nov 16, 2012 10:24am EST  --  Report as abuse
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