Greece examining early repayment of IMF loans, Greek representative says
The Greek representative to the International Monetary Fund (IMF), Mihalis Psalidopoulos, criticised the IMF's first post-programme report and hinted that the Fund had adopted an "ideological approach" on a series of issues concerning the Greek economy.
Greek authorities and the IMF disagreed on: the degree of vulnerability of the banking system, the impact of an increase in the minimum wage on the economy and the size of the fiscal risks from court decisions.
The Greek representative reaffirmed that Athens was examining an early repayment of a part of the IMF loans in order to further improve the dynamics of Greek debt and said that a successful return of the country to international capital markets was evidence that Greece has regained its credibility.
Psalidopoulos acknowledged that recent court decisions overturning economic reforms could have fiscal risks, however he sounded optimistic that emergency reserves envisaged in the state budget were enough to cover any such needs. In his intervention during the IMF's assembly, Psalidopoulos openly disagreed with the IMF's view that the Greek banking system remained vulnerable and that the payment culture in Greece was weak.
He also offered reassurance about an increase in the minimum wage in Greece, saying it would boost labour productivity in the country. "Greek authorities are closely monitoring developments in the labour market and are ready to take any necessary action," he noted.
Source: ana-mpa
