IMF won't join new Greek bailout until Greece makes reforms, creditors provide debt relief

Industries Associated Press

An International Monetary Fund official says the IMF cannot participate in another Greek bailout until Greece and its creditors make difficult decisions on economic reforms and debt relief.

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Briefing reporters on condition of anonymity, the official says Greece needs to commit to reforms and creditors must provide debt relief — extending loan terms or reducing the debt outright — that will allow Greece to pay its bills over time. "It's always been clear the IMF will only come in once these conditions are in place," he said, suggesting that point is months away.

Still, the fund is participating in ongoing debt talks.

The IMF has said Greece's debts are likely to rise to 200 percent of its economic output in the next two years, a burden the fund calls unsustainable.