IMF: Greek debt relief needs long grace, maturity periods

IMF spokesman Gerry Rice in an event in Washington on Thursday underlined that the sustainability of the Greek public debt can be achieved without a haircut but with a long grace period of the existing bonds and the reduction of interest rates.
In any case, he said, the IMF is examining ways to participate in the Greek programme provided that it is based on two pillars; the significant reduction of public debt and credible policies for meeting realistic targets.
Rice also said that the IMF still views the primary budget surplus targets for Greece of 3.5 percent of gross domestic product as unsustainable in the long term, adding, "we believe that this would mean too much austerity."
Rice also said that the IMF will submit its proposals for Greece's reforms and debt at the Eurogroup next Monday.