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Can anyone explain to me why it is in the IMF's interest to see Greece, and as a result the EU, collapse? They spread to want to bankrupt Greece, but truly don'

• disgruntledphd2 11y ago
  The IMF want to get the countries they work with on a "sustainable" path. This typically involves burning bondholders, writing down loads of debt, and privatizing everything that isn't nailed down. Because what has happened in the EU is a mish-mash of the euro area governments, the ECB and the IMF, they have not done things the usual way. Hence, they see that Greece's current debt is unsustainable and want to write down loads of it to allow the economy to grow again. The Germans fear that doing this would cost them lots of money, and encourage prolifigate behaviour in other states (like Italy and Spain). Hence, the memo and these fights (which have been going on since before the last bailout).
  • ZoeZoeBee 11y ago
    The IMF does not want to write down Greeces's loans in the least bit. The IMF is normally the first creditor to be repaid and Greece is the only first world nation to miss a payment. >Meanwhile, missing the IMF payment will cut Greece off from new loans from the organization. http://www.nola.com/business/index.ssf/2015/06/greece_becomes_1st_developed_c.html http://www.nola.com/business/index.ssf/2015/06/greece_become... According to the leaked conversation the IMF understands the Greek's will not be able to repay their debt with the current agreement and lack of economic growth. Unfortunately for the IMF the Greeks do not seem likely to accept futher concessions, without an 'ominous event'... >THOMSEN: But that is not an event. That is not going to cause them to... That discussion can go onfor a long time. And they are just leading them down the road... why are they leading them down the road? Because they are not close to the event, whatever it is. VELKOULESKOU: I agree that we need an event, but I don't know what that will be. But I think Dijsselbloem is trying not to generate an event, but to jump start this discussion somehow on debt, that essentially is about us being on board or not at the end of the day. THOMSEN: Yeah, but you know, that discussion of the measures and the discussion of the debt can go on forever, until some high up.. until they hit the July payment or until the leaders decide that we need to come to an agreement. But there is nothing in there that otherwise is going to force a compromise. Right? It is going to go on forever... VELKOULESKOU: They are not getting close. What is interesting though is that they did give in...they did give a little bit on both the income tax reform and on the.... both on the tax credit and the supplementary pensions. They are doing something but it is very small... https://wikileaks.org/imf-internal-20160319/transcript/page-7.html https://wikileaks.org/imf-internal-20160319/transcript/page-... The IMF is scared of setting a precedent to loan out more bad money when other countries in Europe are soon to face the dilemmas of Greece. Members of the EU itself have begun to question the IMF's role in the Troika governing the EU, made up of the European Commission, European Central Bank and the IMF. The Banks are not your friend