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MF says Greece needs third bailout of €60bn, debt relief

Greece will need €10 billion over the next few months and an additional €50 billion in the next three years, says the IMF. Before making any repayments, Athens should have a 20-year grace period, so the last debt payment would be made in 2055.

This possible relief could be a step towards Greece’s insistence for ‘unsustainable’ debt to creditors of €240 billion to be reorganized. Greece’s’ Finance Minister Yanis Varoufakis told Bloomberg Thursday that he would leave his post and rather ‘cut his arm off’ than sign a deal with creditors that doesn’t include debt reorganization.

READ MORE: Greece’s Varoufakis: Rather ‘cut my arm off’ than agree to current deal

The IMF also predicts a significant slowdown in economic growth this year, zero percent, compared to the 2.5 percent projected earlier.

The statement from the IMF on a third possible bailout for Greece has thrown the fat on the fire of the national referendum scheduled for Sunday. The people will have to decide whether to vote ‘Yes’ or ‘No to the austerity measures offered to Athens by its creditors.


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