Greece debt News

The IMF is involved in talks on making Greece's debt sustainable to approve the country's latest reforms and make new loans available.

Greece and its creditors could complete the first review of the country`s latest bailout by Easter, but Athens needs to do more to complete controversial pension reform and other measures, the EU said Thursday.

The International Monetary Fund does not wish to slap "draconian measures" on hard-up Greece but wants more government progress on pension reform, IMF chief Christine Lagarde has said.

Greece in July accepted a three-year, 86-billion-euro (USD 93-billion) EU bailout.

Left-wing Prime Minister Alexis Tsipras today faces his first test in parliament since a bailout rebellion split his party and triggered a snap general election last month.

A form of debt restructuring rather than outright forgiveness should enable Greece to handle its "unviable" debt burden, the head of the International Monetary Fund was quoted as telling a Swiss newspaper.

Greece and its creditors continued marathon talks into Sunday night with both sides indicating that the terms of a third bailout were close to being finalised.

The EU said on Friday that the International Monetary Fund's calls for debt relief for Greece are "fully compatible" with the agenda in Brussels for negotiating a third Athens bailout.

Greece's talks with its international creditors on a third bailout worth 85 billion euros (USD 93 billion) shifted into a higher gear on Friday, with lead negotiators from the European Union and International Monetary Fund meeting key ministers in Athens.

Chancellor Angela Merkel called on German lawmakers on Friday to back negotiations for a third Greek bailout, saying the alternative was chaos and that suggestions Athens might leave the euro temporarily wouldn`t work.

IMF Managing Director Christine Lagarde said on Friday the Fund was ready to participate in what she called a "complete" package to put the Greek economy back on its feet, make its debt sustainable and allow it to get its funding from financial markets.

Greece on Wednesday geared up for a parliamentary vote on draconian reforms demanded by eurozone creditors in exchange for a huge new bailout, just hours after a bombshell report from the International Monetary Fund criticised the deal.

If Greece follows the advice of a former Goldman Sachs banker, the global investment banking firm could face legal action for helping hide the European country`s debts through complex transactions, a media report said on Saturday.

Greek Prime Minister Alexis Tsipras however faced a rebellion in his own party that could threaten his majority in parliament.

Lawmakers in Greece will vote as early as Friday whether to back a last-ditch reform plan the government submitted to creditors overnight in a bid to stave off financial collapse and exit from the eurozone.

German Chancellor Angela Merkel reiterated Thursday that she opposes a debt "haircut" for Greece, a day after IMF chief Christine Lagarde called for debt restructuring for the crisis-hit country.

"Our loans to countries experiencing difficulties, our loans are conditional upon various requirements, but all of them aim at restoring stability, restoring growth and debt sustainability," she said, Xinhua reported.

Government on Wednesday said it was closely monitoring the Greek crisis and prepared to face any situation in view of its 'comfortable' foreign exchange reserves.

Greeks have their own leaders to blame for the crisis in their country, and not "mean Germans", Italian Foreign Minister Paolo Gentiloni said Tuesday.

"Nobody needs luxury items right now, even people who can buy would feel insane with guilt if they did."