BUSINESS

IMF Says No To Bailout Deal For Greece, Unless Debt Relief Included

07/30/2015 01:31 EDT | Updated 07/30/2015 01:59 EDT
ANGELOS TZORTZINIS via Getty Images
Greek Prime Minister Alexis Tsipras delivers a speech at the Syriza party's central committee in Athens on July 30, 2015. Tsipras, under fire from his comrades over an unpopular EU-IMF bailout, said the ruling Syriza party should hold an emergency congress in September to determine government strategy. AFP PHOTO / ANGELOS TZORTZINIS (Photo credit should read ANGELOS TZORTZINIS/AFP/Getty Images)

WASHINGTON -- 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.

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 per cent of its economic output in the next two years, a burden the fund calls unsustainable.

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