Debt 'unsustainable' after 2038, argues IMF

The International Monetary Fund is insisting on the need for pension cuts from 2019 and that the labor reforms not be reversed despite the government's plans. It is also worried about the prospect of elections in 2019, warning that there is no scope for handouts. However, above all, the IMF has expressed its concern regarding the long-term sustainability of the Greek debt, sending shivers across the markets to which Greece expects to return.

In the Debt Sustainability Analysis included in the Article IV report issued on Tuesday, the Fund says that while the eurozone's commitment to take further measures to ease Greece's debt is significant, it does not secure the country's long-term access to the markets. It also says that the debt is only sustainable in the medium term, till 2038.

The IMF projects that although the debt-to-gross domestic product ratio will drop in the...