International Monetary Fund
The primary budget surplus for last year is expected to come to more than 3.5 percent of gross domestic product, according to the estimates of government sources, strengthening Athens's defense against the arguments of the International Monetary Fund, which has asked for the reduction of the tax-free threshold to be brought forward to January 2019.
Greece's two-year government bond yield soared to its highest level in more than seven months on Tuesday on growing worries over whether the European Union and the International Monetary Fund can reach an agreement over a third Greek bailout.
Two-year yields spiked over 100 basis points to within striking distance of 10 percent, according to Reuters data.
In statements to The Guardian today, Finance Minister Euclid Tsakalotos said that “after seven years of deep recession, no government would accept the measures requested by the IMF.” He also insisted that Athens has not agreed to pursuing a primary surplus of 3.5% of the GDP at the end of the program.
It is possible for Greece’s pending prior actions to be completed before the Eurogroup on October 10, a senior Eurozone official told journalists on Friday. The official noted that it is necessary to conclude the two actions pending by Wednesday when the International Monetary Fund (IMF) and the World Bank will hold their annual meeting in Washington DC.
The International Monetary Fund (IMF) has criticised the EU over the terms of the bailout agreement, which had been agreed between Greece and the eurozone leaders on Monday.
The IMF said that the Greek public debt was now "highly unsustainable" and called for urgent debt relief on a scale "well beyond what has been under consideration to date", the BBC reports.