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'Iron lady' set to play central role in next act of Greek bailout drama 'Iron lady' set to play central role in next act of Greek bailout drama
(about 3 hours later)
Delia Velculescu, the Romanian economist chosen to lead the International Monetary Fund’s negotiating team in Greece, was dubbed the “iron lady” during the fraught talks over Cyprus’s bailout. Given the poor relationship between Athens and its creditors, her toughness will be tested anew in the coming days.Delia Velculescu, the Romanian economist chosen to lead the International Monetary Fund’s negotiating team in Greece, was dubbed the “iron lady” during the fraught talks over Cyprus’s bailout. Given the poor relationship between Athens and its creditors, her toughness will be tested anew in the coming days.
Velculescu arrives in Athens on Thursday amid uncertainty over the IMF’s willingness to throw its weight behind a third bailout for the stricken eurozone state. Alexis Tsipras, the Greek prime minister, hopes to negotiate a deal before 20 August but the IMF will subject any agreement to rigorous examination. Velculescu arrives in Athens on Thursday amid uncertainty over the IMF’s willingness to throw its weight behind a third bailout for the stricken eurozone state. Alexis Tsipras, the Greek prime minister, hopes to negotiate a deal before 20 August, but the IMF will subject any agreement to rigorous examination.
The IMF has indicated that it regards Greece’s debt burden as unsustainable, and any new deal must include debt relief. It is far from clear whether Athens’ eurozone creditors are ready to offer this. Velculescu will have to decide what role the Washington-based lender is willing to play in any new rescue — and what should be expected of Greece in return. The IMF has indicated that it regards Greece’s debt burden as unsustainable, and any new deal must include debt relief. It is far from clear whether Athens’ eurozone creditors are ready to offer this. Velculescu will have to decide what role the Washington-based lender is willing to play in any new rescue – and what should be expected of Greece in return.
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Velculescu is not well known in her native Romania, having left for the US to attend university and later joining the IMF. Velculescu is not well known in her native Romania, having left for the US to attend university and later joined the IMF.
“Inside Romanian financial institutions she’s known due to her position at the IMF, but among journalists and the general public she is mostly unknown,” said Cristian Pantazi, editor-in-chief of Hotnews, an online Romanian news agency. “People who do know her here characterise her as a very serious and dedicated professional,” he added. “Inside Romanian financial institutions, she’s known due to her position at the IMF, but among journalists and the general public she is mostly unknown,” said Cristian Pantazi, editor-in-chief of Hotnews, an online Romanian news agency. “People who do know her here characterise her as a very serious and dedicated professional.”
Velculescu holds a masters and PhD in economics from Johns Hopkins University in Maryland, and has been at the IMF since 2002. She co-authored an earlier IMF review of the Greek economy in 2009, and this, coupled with her time in Cyprus as the IMF’s chief representative between 2012 and 2014, has led to her securing a prominent role in trying to resolve the ongoing crisis in Greece.Velculescu holds a masters and PhD in economics from Johns Hopkins University in Maryland, and has been at the IMF since 2002. She co-authored an earlier IMF review of the Greek economy in 2009, and this, coupled with her time in Cyprus as the IMF’s chief representative between 2012 and 2014, has led to her securing a prominent role in trying to resolve the ongoing crisis in Greece.
Velculescu went to school in the Romanian city of Sibiu, taking extracurricular physics classes taught by Romania’s current president, Klaus Iohannis, according to Romanian media reports.Velculescu went to school in the Romanian city of Sibiu, taking extracurricular physics classes taught by Romania’s current president, Klaus Iohannis, according to Romanian media reports.
Lucian Croitoru, an advisor to the governor of the National Bank of Romania and a former candidate for Romanian prime minister, says he met Velculescu in 2004 when they both worked for the IMF and says that she is a good economist and has “a good sense of diplomacy, a deep understanding of [IMF] policies and a practical approach to issues brought into discussion.” Lucian Croitoru, an adviser to the governor of the National Bank of Romania and a former candidate for Romanian prime minister, says he met Velculescu in 2004 when they both worked for the IMF, and says that she is a good economist and has “a good sense of diplomacy, a deep understanding of [IMF] policies and a practical approach to issues brought into discussion.”
But it was the Cyprus bailout in 2013 that made her name and reputation. It was the Cypriot media who portrayed Velculescu as an “iron lady” who was very tough and demanding in terms of fiscal consolidation and the requirements she made on the country. However, those who dealt with her during Cyprus’s bailout talks have a different viewpoint. But it was the Cyprus bailout in 2013 that made her name. It was the Cypriot media who portrayed Velculescu as an “iron lady” who was very tough and demanding in terms of fiscal consolidation and the requirements she made on the country. However, those who dealt with her during Cyprus’s bailout talks have a different viewpoint.
“She had a reputation for being tough, but I didn’t experience the toughness in my dealings with her,” said Marios Clerides, general manager at the Cooperative Central Bank in Cyprus. “She and the troika came across as resolved rather than aggressive,” he added.“She had a reputation for being tough, but I didn’t experience the toughness in my dealings with her,” said Marios Clerides, general manager at the Cooperative Central Bank in Cyprus. “She and the troika came across as resolved rather than aggressive,” he added.
“She has quite a negative reputation in Cyprus,” said Alexander Apostolides, an economics historian at the European University Cyprus, who was a presidential advisor during the negotiations. “We are a male-dominated society and the fact that she was a woman caused some issues,” he said, but added that in his experience she was “a person willing to listen to other ideas and alternatives. More ready than others to hear other approaches. “She has quite a negative reputation in Cyprus,” said Alexander Apostolides, an economics historian at the European University Cyprus, who was a presidential adviser during the negotiations. “We are a male-dominated society and the fact that she was a woman caused some issues,” he said, but added that in his experience she was “a person willing to listen to other ideas and alternatives, more ready than others to hear other approaches”.
“Since she left, the relationship between the IMF and Cyprus has been smoother, but that could be for many reasons, although you can’t take away the change in top-level personnel,” he said.“Since she left, the relationship between the IMF and Cyprus has been smoother, but that could be for many reasons, although you can’t take away the change in top-level personnel,” he said.
Apostolides added that “her appointment is a signal of how the banks in Greece will be treated. We should expect that she will insist that banks be recapitalised at a higher rate. She’s not going to accept that previous recapitalisation efforts were enough.” Apostolides added: “Her appointment is a signal of how the banks in Greece will be treated. We should expect that she will insist that banks be recapitalised at a higher rate. She’s not going to accept that previous recapitalisation efforts were enough.”
The next three weeks, leading up to 20 August, are going to see intense negotiations between the IMF, the European commission and the European Central Bank – the so-called troika of creditors – and Greece, as they try to bash out a new bailout agreement. Velculescu could be at the centre of the storm.The next three weeks, leading up to 20 August, are going to see intense negotiations between the IMF, the European commission and the European Central Bank – the so-called troika of creditors – and Greece, as they try to bash out a new bailout agreement. Velculescu could be at the centre of the storm.