Lagarde and Tusk stress need to make Greek debt sustainable

The IMF Managing Director says debt restructuring is needed in the case of Greece for it to have debt sustainability

The Managing Director of the International Monetary Fund, Christine Lagarde, and the President of the European Council, Donald Tusk, in separate press conferences both suggested that Greece’s debt needs to be restructured. “The realistic proposal from Greece will have to matched by an equally realistic proposal on debt sustainability from the creditors,” Tusk said. “Only then will we have a win-win situation.” Lagarde said Greece needs to continue cost cutting reforms. She added: “The other leg is debt restructuring, which we believe is needed in the particular case of Greece for it to have debt sustainability. That analysis has not changed. It well may be that numbers may have to be revisited but our analysis has not changed.” See also our latest cepInput on the matter.