Lagarde: Give Greece Debt Relief

BRUSSELS, BELGIUM – A day after the Eurogroup approved the new bailout deal for Greece, accepted by its prime minister, Alexis Tsipras, and the Greek Parliament, the International Monetary Fund has called on Eurozone ministers to offer Greece additional debt relief, the BBC reported.

While IMF head Christine Lagarde embraced the new deal, she warned that Greek debt was no longer sustainable. She called for debt relief “well beyond what has been considered so far,” the BBC reported. “Greece cannot restore debt sustainability solely through actions of its own,” she said.

Under the new deal, will receive up to €86bn (£61bn) in loans over the next three years, in return for tax rises and spending cuts.

The first tranche of loans, said the BBC, will be for €26 billion, which will include €10 billion to recapitalize Greek banks and the remaining €16 billion in instalments, beginning €13billion delivered in time for Greece to repay an installment on a previous loan of about €3.2 billion to the European Central Bank (ECB), due by August 20.

European Commission President Jean-Claude Juncker emphasized, the BBC reported, that this means,”loud and clear” that Greece will stay in the Eurozone.