IMF, eurozone seek velvet divorce

Even though no officials have publicly said so, it is now certain that the International Monetary Fund will not participate in the Greek bailout program with funding.

IMF Managing Director Christine Lagarde meets German Chancellor Angela Merkel in Berlin on Monday but hardly anyone believes there will be a compromise on Greece's debt that would allow the Washington-based Fund to stay on board.

Rather, discussions are already under way to secure the IMF a velvet divorce from the eurozone that will have the least repercussions for Greece.

The IMF now will maintain an advisory role in the post-bailout supervision of Greece.

Moreover, as part of its annual report, it will draft a debt sustainability analysis in which it is expected to articulate the view that the debt is not sustainable, but that it can become so under certain conditions.

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