New Warning from the International Monetary Fund Regarding Greece's Situation

The International Monetary Fund warned on Wednesday that Greece needs a larger portion of its debts to be forgiven. This comes as the Greek parliament votes on the government's agreement with 19 Eurozone countries on the same day. The IMF's report, which reached Reuters on Wednesday, July 15, indicates that Greece's debt could rise to 200% of the country's national income in the next two years, and there is a risk that Greece's situation could worsen beyond the current state. According to the British newspaper The Guardian, the IMF doubts Greece's ability to meet the budget deficit targets set by European lenders. The international body suggests that Greece should start repaying its debts after a 30-year period. On Monday, July 13, Greece reached an agreement with 19 Eurozone member countries on the general terms of a multi-billion euro third financial bailout for the country. The main condition of this agreement is the implementation of strict economic reforms that Greece must pass in its parliament before receiving this loan. If the Greek parliament votes positively on this agreement on Wednesday, Greece will be able to receive financial assistance of 86 billion euros. Meanwhile, Alexis Tsipras, the leftist Prime Minister of Greece, has failed to convince all members of his party in the parliament to support the agreement text. 35 members of Tsipras's party, Syriza, announced on Tuesday that they would vote against austerity policies. These representatives believe that implementing these economic programs will exacerbate poverty and unemployment in Greece. Since June 30 of this year, creditors have cut off their assistance to Greece. Greek banks have also been closed for more than two weeks. There were fears that Greek banks would completely run out of money and the government would have to print its former currency, the drachma, again. In early July, Greece failed to repay 1.5 billion euros to the IMF. Greece is the wealthiest country that has ever failed to repay its debts to this fund. 61.3% of Greek voters in a referendum in mid-July voted against increased austerity measures, an action that heightened the possibility of Greece exiting the Eurozone and even leaving the European Union. In this context, the European deadline for Greece is until Sunday: 'Agreement or risk bankruptcy.'