Greece repays IMF debt two years ahead of schedule

[peppertree]

Greece has paid off its entire debt from the financial crisis to the International Monetary Fund (IMF), two years ahead of schedule.

Finance Minister Christos Staikouras said the repayment “closes the chapter” that was opened in May 2010.

“[This is] a very positive development,” Staikouras, 48, stated, adding that the country could save around €230 million in interest.

Greece’s European Union bailout lenders gave the formal go-ahead last week for the early repayment of the outstanding loans worth €1.86 billion.

Three successive bailouts totalling some €260 billion between 2010 and 2018 prevented Greece from going bankrupt and exiting the shared euro currency - of which the IMF lent €28 billion between 2010 and 2014.

But successive Greek governments were forced to implement painful budget cuts and tax hikes that led to a surge in unemployment and poverty - with GDP still 25% below 2008 levels.

At: https://www.euronews.com/2022/04/05/greece-repays-imf-debt-two-years-ahead-of-schedule-says-finance-minister

Greek Finance Minister Christos Staikouras during a recent press conference.

The early repayment to the IMF of nearly €2 billion of some €28 billion borrowed from the Fund during the country's economic crisis in 2010-14 was described by Staikouras as “closing the chapter.”

[Farmer-Rick]

1. Wow that was a very high price to pay

"But successive Greek governments were forced to implement painful budget cuts and tax hikes that led to a surge in unemployment and poverty - with GDP still 25% below 2008 levels."

Austerity was a stupid scam by bankers but many fools were conned by it.

[peppertree]

2. Well said.

That goes to the the biggest reason Ms. Georgieva is such a breath of fresh air at the Fund: She is the first IMF director to show she understands that while fiscal and monetary prudence is a good idea, austerity most certainly is not.

And proof of this is in the historic refinance agreement Georgieva signed with Argentina - which was even lauded by Prof. Stiglitz (https://www.democraticunderground.com/111692470 ).

This is all the more so in countries whose foreign debt crises stem not so much from profligate spending - but from massive dollarizing and offshoring of assets by the elites (plus foreign speculators).

It could be that past directors actually understood this - but were either too cowed to act accordingly (Strauss-Kahn), or just didn't give a shit (Camdessus and Lagarde).

[Farmer-Rick]

3. Thanks for the details

I'll have to look into Ms. Georgieva. She does sound like a breath of fresh air. She seems to be working to take the IMF back to its roots to prevent global economic depression.

[peppertree]

4. You're very welcome

All the Best.