Imf eases lending to crisis countries

imf eases lending to crisis countries

The IMF no longer wants to enforce debt restructuring as a precondition for receiving aid, as it did in an announcement over the weekend.

Instead, the maturities of short-term debts can be extended in the future if the country also receives funds from other creditors – public or private – during the program. IMF expects greater flexibility to help fight crisis more successfully.

The new rules are not directly tailored to greece’s current needs, but have been developed over the past four years, according to the fund. They are a consequence of the "shortcomings" in the 2010 rescue attempt for greece that, according to the IMF, have become apparent over time.

The new rules could also have an impact on the ongoing negotiations between international creditors and the bankrupt country for further aid loans. In the summer of 2015, after difficult negotiations, a third loan package of 86 billion euros was agreed over a period of three years. Greece can only hope for new bailout loans if parliament passes further measures such as tax hikes and pension cuts.

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