Lagarde:Greece needs to implement structural reforms

Lagarde, who is on a two-day visit to India, said that she felt strongly for taxpayers, but added the country needed to reduce the fiscal deficit. "I know how hard it has been for the Greek population particularly the people who pay their tax, particularly the people who are transparent," she said.

"Equally, I really strongly feel that economy needs to be transformed, that structural reforms need to take place, that pension schemes need to be stabilised and properly funded because you cannot borrow in future constantly," she added. According to Lagarde, there is no alternative to fiscal reforms. "Ultimately, you reduce the fiscal deficit that has not been reduced...you have to deal with it," she said.

"But you deal (with) it in such a way that it becomes sustainable in the medium to long term and the country can stand on its feet, borrow in the international market,” she noted.