Thursday, July 14, 2011

IMF Executive Board appears to have yanked on Lagarde's leash!

Signs are that the IMF might be tiring of breaking its own rulebook at the behest of the previous and present French MDs of this increasingly ineffective organisation.

On top of increasing the expected negative growth rate for Greece from -3.0% to -3.8% it is now apparently indicating a cut back in its share of future loans. Read Bloomberg, from here.

Further indications come in a Der Spiegel article, linked here, with this quote:

Still, the results of Germany's apparent about-face are likewise far-reaching. There is now a need for euro-zone countries to come up with the €30 billion themselves. Should they be unable to do so, the IMF has said it would not participate in a second bailout package for Greece.



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