IMF Chief Christine Lagarde met with Greek Prime Minister Alexis Tsipras in Beijing and agreed on the need now for debt relief for Greece.
The two met on the sidelines of the "Belt and Road Forum for International Cooperation” with Lagarde agreeing on the need for a feasible fiscal 'path' for Greece and sent a threatening signal to Germany that if it did not agree on debt relief for Greece then the IMF would withdraw from the programme.
According to Greek media sources, Tsipras and Lagarde totally agreed on the need for a solution for the Greek debt and the definition of the mid-term measures immediately.
Such a development is necessary in order for growth potentials of the Greek economy to unfold. Moreover, Lagarde noted that if German Finance Minister Wolfgang Schaeuble insists on the view that there is no need for debt relief and a feasible fiscal path after 2018 can't be agreed, then the IMF will leave from the programme.
Tsipras answered that in this case (if the IMF leaves from the programme) then the measures that will be voted in the Greek parliament in the week will not be implemented in 2019-2020.
