Financial Times
May 15, 2011
The International Monetary Fund has dismissed fears that talks with Greek officials on a revamped bail-out package are close to collapse over the socialist government’s reluctance to push ahead with privatisation.
George Papaconstantinou, finance minister, has come under pressure to accept harsher terms for a planned €50bn ($70bn) of disposals – including an accelerated timetable and sales of 100 per cent of state-controlled enterprises – despite strong opposition within the cabinet and the governing Pasok socialist party.
Achieving agreement on a broad-ranging privatisation programme to reduce debt is critical to Greece’s chances of getting a fresh European Union-IMF bail-out loan in 2012 to avert a sovereign default.
The IMF said on Sunday: “The talks are continuing and making progress.”
The statement came after Greek officials voiced fears that the talks would fail because the terms demanded by the EU and IMF were politically unacceptable, said one person with knowledge of the discussions.
“One proposal, that the EU should take over the privatisation process from the Greeks, was seen as a red flag,” it said.
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