IMF takes tougher stance over Greek debt

Article reported that the often taciturn International Monetary Fund had a lot to say in late January 2012 about the eurozone debt crisis. Christine Lagarde, its managing director, urged the eurozone on the 23 January 2012 to create a much bigger rescue fund for its troubled governments, holding out the prospect that the fund might seek to increase its own firepower in return.

On Wednesday she argued that if Greece’s private creditors did not accept a big enough writedown, the European Central Bank might have to take a reduction in its own Greek debt holdings. “The balance between the participation of the private and the public sector is a concerning question,” Ms Lagarde said.

Kathimerini, 25.1.12: Haircut pressure grows on ECB http://www.ekathimerini.com/4dcgi/_w_articles_wsite2_8908_25/01/2012_424194

Kathimerini, 25.1.12: European skepticism over Greece growing http://www.ekathimerini.com/4dcgi/_w_articles_wsite1_1_25/01/2012_424195

ESO: Background information: Eurozone ministers reject private bondholders' Greek offer http://www.europeansources.info/record/eurozone-ministers-reject-private-bondholders-greek-offer/

IMF: Press Release, 24.1.12: Transcript of the Updates to the World Economic Outlook/Global Stability Report/Fiscal Monitor Press Briefing http://www.imf.org/external/np/tr/2012/tr012412.htm

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