Reuters – Greece must commit to implementing reforms in order to shield itself from external risks as it emerges from its third international bailout, the chief economist of the euro zone’s rescue fund said in an interview published on Friday.
Asked whether Greece was ready to fund itself only through markets, in an environment of increased risk due to political developments in Italy, Strauch said that investors “have honoured Greece’s reform efforts”, citing previous bond issues.
“There is no magic number for the ‘right’ yield. It is a process,” he said. “The best thing Greece can do now is to demonstrate strong reform ownership and to clearly signal that the successful reform course will be continued.”
European lenders have been negotiating a deal to provide further debt relief to the country. Eurozone policymakers will seek last-minute backing this week from the IMF for their debt relief offer to Greece.
“We hope that the IMF can come on board during the final stretch of the ESM programme,” Strauch said.
The IMF participated in Greece’s first two programmes but refused to join the third which began in 2015. It says the eurozone must agree on how to make the country’s debt, now at 179 percent of GDP, sustainable.