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Greek saga ends with the closing of IMF’s office in Athens

Bringing the biggest bailout in global financial history to an end.
Tourists visit the monument of the unknown soldier In front of the Greek parliament building in Athens. Image: Bloomberg

After almost a decade, the world’s lender of last resort is ready to leave Greece for good.

For a while there, Europe’s most indebted nation had everyone worried this Mediterranean holiday destination was going to bring on the collapse of the euro. Its ups and downs had the market gyrating. Then came the biggest bailout in global financial history.

The International Monetary Fund led the effort to save Greece from itself. At the beginning of the 10-year crisis in Greece, the Washington-based institution had asked for a restructuring of country’s debt. There was a protracted and painful debate about the merits of austerity that mutated into game of brinkmanship that brought Greece to the very edge of the cliff.

The Greeks loathed the IMF. It was one of the “bad guys” in the so-called troika of lenders that included the European Central Bank and the European Union’s executive arm, the commission. Its presence was physical in the shape of a permanent office in central Athens. Now, as the world’s attention turns to another geopolitical crisis, the IMF is finally ready to pack its bags.

The decision was announced as new Greek Prime Minister Kyriakos Mitsotakis visited Washington. A former banker, he came to power by ousting Alexis Tsipras, the man who took on the EU and lost.

“We look forward to a whole new chapter in our relationship, a relationship of positive cooperation,” Mitsotakis told reporters On Monday after meeting with the IMF Managing Director Kristalina Georgieva, herself relatively new to the job.

It marks a degree of closure to a relationship that’s rarely been easy. In 2019, Greece repaid a slice of the money owed sooner than scheduled. The government plans to repay upfront more of the IMF loans in 2020, in an attempt to prove that the crisis is over — for good.

© 2020 Bloomberg L.P.

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”He that dies pays all debts”

William Shakespeare 1564-1616)

Just in case you thought that Euroland bailed out one of ”its members” to save the Euro!

”BRUSSELS (Reuters) – The euro zone’s rescue fund, the European Stability Mechanism, agreed on Monday to allow Greece to pay back earlier some of its debt to the International Monetary Fund, the ESM said in a statement.

The move, which concerns loans worth around 2.7 billion euros ($3.0 billion), allows Athens to reduce its debt-servicing costs because IMF loans carry higher interest than Greece would now pay on the market.

The decision followed a Greek government request to the ESM in September to repay some of its loans to the IMF, which were worth about 9 billion euros”

End of comments.





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