Greece’s fate is in the hands of two women. On Wednesday in Berlin, Angela Merkel held a meeting with Christine Lagarde, director of the International Monetary Fund. The main topic of the meeting was the Greek crisis.
At the end of the mini-summit, Lagarde argued that first reforms will have to be applied and only then would they restructure the debt, which would not be a real “cut.”
Lagarde made a statement to the ARD television network about the future participation of the IMF in Greece’s rescue program. She said that “after the progress made by Greece, we are much more confident of our participation in the aid program.” The message she wanted to send is very clear: “The scope of the debt restructuring will clearly depend on how many reforms have been implemented” and that we must move toward “a postponement of loan maturities and a significant decrease in interest rates.” The first impression is that lenders want to impose their agenda before discussing the demands of the Athens government.