IMF: Greek Debt Looks Sustainable

Wall Street Journal
May 12, 2011

Greece looks poised to avoid a restructuring of its debt though the International Monetary Fund remains ready to provide further aid to the country if requested by the government, an IMF official said Thursday.

"At this point, on the basis of our program, we think that Greece should be [headed] in the right direction to a position where its debt is sustainable. Under those circumstances, there's no need for any type of restructuring," said Antonio Borges, director of the IMF's European Department.

Mr. Borges said the IMF doesn't expect any kind of sovereign default in Europe at present, though he said he doesn't believe in "a miraculous restructuring solution," for Greece as suggested by some European politicians and market participants.

The IMF in June will be able to update its view on the pace of Greek reforms, following an ongoing investigation by the fund, Mr. Borges said.

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