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You can find the current article at its original source at http://www.theguardian.com/business/live/2015/jul/14/greek-crisis-tsipras-political-backlash-bailout-osborne-uk-live
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| Greek debt crisis: Tsipras vows not to 'abandon ship'; IMF urges massive debt relief - as it happened | Greek debt crisis: Tsipras vows not to 'abandon ship'; IMF urges massive debt relief - as it happened |
| (about 1 month later) | |
| 11.59pm BST | 11.59pm BST |
| 23:59 | 23:59 |
| IMF fires a cannonball into Greek bailout | IMF fires a cannonball into Greek bailout |
| We’ve now got hold of the new IMF report into Greece’s debt sustainability. | We’ve now got hold of the new IMF report into Greece’s debt sustainability. |
| And a quick perusal shows that the Fund has comprehensively obliterated the notion that this third Greek bailout will work, as it stands. | And a quick perusal shows that the Fund has comprehensively obliterated the notion that this third Greek bailout will work, as it stands. |
| The introduction to the report says enough, really: | The introduction to the report says enough, really: |
| Greece’s public debt has become highly unsustainable. This is due to the easing of policies during the last year, with the recent deterioration in the domestic macroeconomic and financial environment because of the closure of the banking system adding significantly to the adverse dynamics. | Greece’s public debt has become highly unsustainable. This is due to the easing of policies during the last year, with the recent deterioration in the domestic macroeconomic and financial environment because of the closure of the banking system adding significantly to the adverse dynamics. |
| The financing need through end-2018 is now estimated at €85bn and debt is expected to peak at close to 200 percent of GDP in the next two years, provided that there is an early agreement on a program. Greece’s debt can now only be made sustainable through debt relief measures that go far beyond what Europe has been willing to consider so far. | The financing need through end-2018 is now estimated at €85bn and debt is expected to peak at close to 200 percent of GDP in the next two years, provided that there is an early agreement on a program. Greece’s debt can now only be made sustainable through debt relief measures that go far beyond what Europe has been willing to consider so far. |
| The IMF’s fundamental conclusion is that Greece will simply not be able to borrow at affordable rates again, until its debt burden is lower. | The IMF’s fundamental conclusion is that Greece will simply not be able to borrow at affordable rates again, until its debt burden is lower. |
| The situation was already bad - but recent developments make it much, much worse. | The situation was already bad - but recent developments make it much, much worse. |
| The events of the past two weeks—the closure of banks and imposition of capital controls—are extracting a heavy toll on the banking system and the economy, leading to a further significant deterioration in debt sustainability relative to what was projected in our recently published DSA. | The events of the past two weeks—the closure of banks and imposition of capital controls—are extracting a heavy toll on the banking system and the economy, leading to a further significant deterioration in debt sustainability relative to what was projected in our recently published DSA. |
| Today’s report is light on projections, but the ones included are stark enough. The stand-out fact: Greek debt is on track to peak at close to 200% of GDP in the next two years. Only Japan, after two lost decades, comes close to that ratio. | Today’s report is light on projections, but the ones included are stark enough. The stand-out fact: Greek debt is on track to peak at close to 200% of GDP in the next two years. Only Japan, after two lost decades, comes close to that ratio. |
| Perhaps this is why the US government, led by Treasury secretary Jack Lew, has been so vocal about the need for debt sustainability to be addressed? | Perhaps this is why the US government, led by Treasury secretary Jack Lew, has been so vocal about the need for debt sustainability to be addressed? |
| The IMF is also amusingly sniffy about the targets Greece is being set. For example: | The IMF is also amusingly sniffy about the targets Greece is being set. For example: |
| Medium-term primary surplus target: Greece is expected to maintain primary surpluses for the next several decades of 3.5 percent of GDP. Few countries have managed to do so. The reversal of key public sector reforms already in place— notably pension and civil service reforms—without yet any specification of alternative reforms raises concerns about Greece’s ability to reach this target | Medium-term primary surplus target: Greece is expected to maintain primary surpluses for the next several decades of 3.5 percent of GDP. Few countries have managed to do so. The reversal of key public sector reforms already in place— notably pension and civil service reforms—without yet any specification of alternative reforms raises concerns about Greece’s ability to reach this target |
| But it’s conclusion is clear - if Europe wants this bailout to work, it must either grant Greece three decades grace before repaying its debts, or cut the face value of its borrowings, deeply.... | But it’s conclusion is clear - if Europe wants this bailout to work, it must either grant Greece three decades grace before repaying its debts, or cut the face value of its borrowings, deeply.... |
| And on that note, we’re going to shut down for the night. Back tomorrow. Goodnight! GW | And on that note, we’re going to shut down for the night. Back tomorrow. Goodnight! GW |
| Updated | Updated |
| at 12.10am BST | at 12.10am BST |
| 11.41pm BST | 11.41pm BST |
| 23:41 | 23:41 |
| This is important. IMF says Greece needs 30yr grace period on its debt. Even bigger debt relief https://t.co/JRbGA8Wyn7 | This is important. IMF says Greece needs 30yr grace period on its debt. Even bigger debt relief https://t.co/JRbGA8Wyn7 |
| 11.19pm BST | 11.19pm BST |
| 23:19 | 23:19 |
| IMF: We walk away without Greek debt relief | IMF: We walk away without Greek debt relief |
| IMF won't take new #Greece programme to board unless there is a solution to debt problem | IMF won't take new #Greece programme to board unless there is a solution to debt problem |
| 11.19pm BST | 11.19pm BST |
| 23:19 | 23:19 |
| THIS IS IT. The IMF stating as bluntly as it can that Europe must decide between giving Greece a 30-year grace period to repay its debt, and accepting the reality that serious haircuts must be taken: | THIS IS IT. The IMF stating as bluntly as it can that Europe must decide between giving Greece a 30-year grace period to repay its debt, and accepting the reality that serious haircuts must be taken: |
| IMF: Greece debt "highly unsustainable" - needs up front haircut or dramatic maturities extension and grace period pic.twitter.com/0YuWG2Va7j | IMF: Greece debt "highly unsustainable" - needs up front haircut or dramatic maturities extension and grace period pic.twitter.com/0YuWG2Va7j |
| 11.12pm BST | 11.12pm BST |
| 23:12 | 23:12 |
| Some late breaking news: The International Monetary Fund has confirmed today’s leaked report which warned that Greece needs much more debt relief than the eurozone has accepted: | Some late breaking news: The International Monetary Fund has confirmed today’s leaked report which warned that Greece needs much more debt relief than the eurozone has accepted: |
| Here’s the details; | Here’s the details; |
| IMF on Greece: €85bn may not be enough due to optimistic surplus and growth targets: pic.twitter.com/6pEmtovW47 | IMF on Greece: €85bn may not be enough due to optimistic surplus and growth targets: pic.twitter.com/6pEmtovW47 |
| 10.43pm BST | 10.43pm BST |
| 22:43 | 22:43 |
| Heads-up: the process of driving Greece’s bailout deal through parliament will start early: | Heads-up: the process of driving Greece’s bailout deal through parliament will start early: |
| #Greece | Prior actions draft bill to be introduced to parliamentary committees and plenary tomorrow 0700 GMT. | #Greece | Prior actions draft bill to be introduced to parliamentary committees and plenary tomorrow 0700 GMT. |
| 10.04pm BST | 10.04pm BST |
| 22:04 | 22:04 |
| Snap Summary: Tsipras shows leadership | Snap Summary: Tsipras shows leadership |
| Even if you think Alexis Tsipras has misplayed the crisis, it’s hard not to be impressed by his composure in tonight’s interview. | Even if you think Alexis Tsipras has misplayed the crisis, it’s hard not to be impressed by his composure in tonight’s interview. |
| Barely 36 hours after agreeing the punitive bailout deal with fellow eurozone leaders, the Greek PM has given a solid defense of the agreement he brought back from Brussels. | Barely 36 hours after agreeing the punitive bailout deal with fellow eurozone leaders, the Greek PM has given a solid defense of the agreement he brought back from Brussels. |
| He was scathing about the tactics played by his opponents, declaring: | He was scathing about the tactics played by his opponents, declaring: |
| “Last night was a bad night for Europe.” | “Last night was a bad night for Europe.” |
| and adding that the events last weekend “does not honour the tradition of a democratic Europe”. | and adding that the events last weekend “does not honour the tradition of a democratic Europe”. |
| He repeated his claim that, by calling a referendum, he had ended up with a better deal that addresses Greece’s medium-term funding needs. And, eventually, debt relief. | He repeated his claim that, by calling a referendum, he had ended up with a better deal that addresses Greece’s medium-term funding needs. And, eventually, debt relief. |
| He said: | He said: |
| “To be frank, here, they [eurozone countries] are not only forced to give fresh money, but to give 82 billion, and are accepting the restructure of debt.” | “To be frank, here, they [eurozone countries] are not only forced to give fresh money, but to give 82 billion, and are accepting the restructure of debt.” |
| However, there was no pretense that he’d played a blinder in Brussels. Tsipras even admitted that he didn’t believe in the plan forced on Greece - but he’d do his best to implement it. | However, there was no pretense that he’d played a blinder in Brussels. Tsipras even admitted that he didn’t believe in the plan forced on Greece - but he’d do his best to implement it. |
| “I am fully assuming my responsibilities, for mistakes and for oversights, and for the responsibility of signing a text that I do not believe in, but that I am obliged to implement,” | “I am fully assuming my responsibilities, for mistakes and for oversights, and for the responsibility of signing a text that I do not believe in, but that I am obliged to implement,” |
| There were signs that Tsipras was still digesting the impact of his all-night battles with his eurozone neighbours, as he said bitterly that: | There were signs that Tsipras was still digesting the impact of his all-night battles with his eurozone neighbours, as he said bitterly that: |
| “The hard truth is this one-way street for Greece was imposed on us,” | “The hard truth is this one-way street for Greece was imposed on us,” |
| That #Tsipras spoke of #Greece suffering post-traumatic stress at moment says all you need to know about what kind of w/e he had #Greece | That #Tsipras spoke of #Greece suffering post-traumatic stress at moment says all you need to know about what kind of w/e he had #Greece |
| On Grexit, he warned that the risk hadn’t totally vanished, until the bailout deal has been ratified. But he was adamant that the country didn’t have the resources to cope outside the eurozone. | On Grexit, he warned that the risk hadn’t totally vanished, until the bailout deal has been ratified. But he was adamant that the country didn’t have the resources to cope outside the eurozone. |
| And he claimed that some conservative groups would be keen to see Syriza out on their collective ear. The bruises from the Euro summit may never really heal. | And he claimed that some conservative groups would be keen to see Syriza out on their collective ear. The bruises from the Euro summit may never really heal. |
| He didn’t dump the blame for the crisis on Yanis Varoufakis -- his former finance minister was a great economist; that doesn’t always translate into political skills, though. | He didn’t dump the blame for the crisis on Yanis Varoufakis -- his former finance minister was a great economist; that doesn’t always translate into political skills, though. |
| But perhaps most importantly, Tsipras vowed to fight on and take hard decisions. | But perhaps most importantly, Tsipras vowed to fight on and take hard decisions. |
| “The worst thing a captain could do while he is steering a ship during a storm, as difficult as it is, would be to abandon the helm.” | “The worst thing a captain could do while he is steering a ship during a storm, as difficult as it is, would be to abandon the helm.” |
| We’ll find out on Wednesday night whether Cap’n Alexis has the support of the crew, when Syriza are asked to vote on the tough austerity and radical economic reforms demanded by creditors. But tonight, he’s got his hand on the rudder. | We’ll find out on Wednesday night whether Cap’n Alexis has the support of the crew, when Syriza are asked to vote on the tough austerity and radical economic reforms demanded by creditors. But tonight, he’s got his hand on the rudder. |
| So, hats off to @tsipras_eu at last? | So, hats off to @tsipras_eu at last? |
| #Tsipras overarching theme: #Greece backed into corner. Doesn't believe in agreement. Bad night for Europe. But signed "to avoid disaster" | #Tsipras overarching theme: #Greece backed into corner. Doesn't believe in agreement. Bad night for Europe. But signed "to avoid disaster" |
| Updated | Updated |
| at 10.08pm BST | at 10.08pm BST |
| 9.20pm BST | 9.20pm BST |
| 21:20 | 21:20 |
| Tsipras: Captain cannot just abandon ship | Tsipras: Captain cannot just abandon ship |
| What about the big question ahead of tomorrow night’s vote on the bailout -- might you resign? | What about the big question ahead of tomorrow night’s vote on the bailout -- might you resign? |
| Tsipras says that “A captain cannot abandon ship” during a storm. | Tsipras says that “A captain cannot abandon ship” during a storm. |
| And on the possibility of a unity government, the PM says it is important not to “create instability” during these critical times. | And on the possibility of a unity government, the PM says it is important not to “create instability” during these critical times. |
| 9.11pm BST | 9.11pm BST |
| 21:11 | 21:11 |
| So, is the threat of Grexit finally off the table? | So, is the threat of Grexit finally off the table? |
| Tsipras says that, until the bailout deal is finalised, nothing is certain. | Tsipras says that, until the bailout deal is finalised, nothing is certain. |
| Greek PM @atsipras asked if #Grexit finally avoided: I cannot say anything with certainty before the deal finally signed. #greekment | Greek PM @atsipras asked if #Grexit finally avoided: I cannot say anything with certainty before the deal finally signed. #greekment |
| 9.09pm BST | 9.09pm BST |
| 21:09 | 21:09 |
| We won’t reverse the measures we have taken this year, the PM insists (so the cleaning ladies re-instated after a long campaign may be safe) | We won’t reverse the measures we have taken this year, the PM insists (so the cleaning ladies re-instated after a long campaign may be safe) |
| Greek PM @atsipras: There is no issue of recalling laws considered to be unilateral by the creditors. #greekment | Greek PM @atsipras: There is no issue of recalling laws considered to be unilateral by the creditors. #greekment |
| 9.06pm BST | 9.06pm BST |
| 21:06 | 21:06 |
| Backstage from the #Tsipras interview (via @geoterzis) #Greece #erttsipras #greekment #rbnews pic.twitter.com/E1lsVX2beX | Backstage from the #Tsipras interview (via @geoterzis) #Greece #erttsipras #greekment #rbnews pic.twitter.com/E1lsVX2beX |