New European money needed for Greece, IMF says

WASHINGTON (MarketWatch) - Greece needs more money from its European creditors to get back on a path to debt sustainability, the International Monetary Fund said Thursday in a report completed before the breakdown in talks between the country and its creditors. The international agency estimated Greece would need about 50 billion euros in new financing over three years. The IMF said that weak reform effort and a weak budget outlook over the past year made the country's debt dynamics unsustainable. As a result, Greece's policies will need to come back on track "but also, at a minimum, the maturities of existing European loans will need to be extended significantly while new European financing to meet financing needs over the coming years will need to be provided on similar concessional terms," the IMF said. And if reform efforts are weakened further, haircuts on debt will become necessary, the IMF said.

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