Greece: if austerity doesn't work... Try more austerity! | 287 comments (287 topical, editorial, 0 hidden)

Reuters: IMF expected to pay next Greek tranche: eurozone sources

"The situation is clear: If there is a strong commitment from the Europeans to do whatever it takes to back Greece, the IMF will pay the money. And I can tell you there will be such a commitment," one senior euro zone source told Reuters.
The IMF had said disbursement of more money was contingent on a plan being finalized to guarantee Greece's funding needs into next year.
In Paris, Zhu Min, a special advisor to the IMF's managing director, said the Fund was deeply concerned by the latest political turmoil in Greece but stood ready to help if the government could win consent for its austerity plan.

(My emphasis)

Economics is politics by other means

by Carrie (migeru at eurotrib dot com) on Thu Jun 16th, 2011 at 04:30:56 PM EST
[ Parent ]

Re: Bah humbug! (4.00 / 4)

Keynes said

The old saying holds. Owe your banker £1000 and you are at his mercy; owe him £1 million and the position is reversed.

Addendum to Keynes: if the bank has written CDS for £1 billion of your debt you hold the entire world economy at your mercy.

Economics is politics by other means

by Carrie (migeru at eurotrib dot com) on Thu Jun 16th, 2011 at 04:33:13 PM EST
[ Parent ]

Greece: if austerity doesn't work... Try more austerity! | 287 comments (287 topical, 0 editorial, 0 hidden)