IMF Weighs Greek Loan That Would Release Funds After Debt Relief
- Fund prefers to see debt relief up front, spokesman says
- Conditional loan would avoid possible ‘destabilizing’ outcome
Pedestrians pass the entrance to the headquarters of the Bank of Greece in Athens, Greece, on Thursday, May 26, 2016. Greece may have passed a milestone and its bond market has been lucrative for some investors, but the road to recovery doesn't look much shorter.
Photographer: Yorgos Karahalis/BloombergThe International Monetary Fund is considering a conditional loan for Greece that would defer the release of the money until the nation’s European creditors agree to provide debt relief, the fund’s spokesman said.
The IMF would still prefer that Greece’s euro-zone partners agree to debt relief before the fund presents a loan proposal to its executive board, spokesman Gerry Rice told reporters Thursday in Washington. Any loan would have to be approved by the IMF’s 24-member board, which represents the institution’s 189 member countries.