FRANKFURT (Reuters) - The International Monetary Fund is a valuable participant in euro zone bailouts and should remain part of the “troika” of international lenders, Bundesbank board member Andreas Dombret was quoted as saying on Monday.
EU Justice Commissioner Viviane Reding called in July for the troika of the European Commission, European Central Bank and International Monetary Fund to be dissolved, arguing that in future Europe must resolve its problems without the IMF. “The time of the troika is over,” she said then.
Other European officials, including Klaus Regling, head of the euro zone’s bailout fund, have also said the IMF should not play a role in the longer term in euro zone rescue packages.
But the German central bank’s Dombret highlighted the IMF’s unique experience in setting bailout conditions.
“The troika profits from the vast experience of the IMF in adjustment programmes. It is well-positioned to enforce the conditions attached to the packages,” Dombret told German daily Boersen-Zeitung.
“One should not switch pilots in the middle of turbulence.”
Reporting by Sakari Suoninen; Editing by Catherine Evans