Sat Apr 2nd, 2016 at 07:54:24 PM EST
Wikileaks has released transcripts of an IMF discussion of how to get Germany to accept IMFs proposal for austerity and debt relief for Greece. The method seems to be to create a crisis in April by threatening to pull out.
WikiLeaks - IMF Internal Meeting Predicts Greek 'Disaster', Threatens to Leave Troika
Thomsen said internally that the threat of an imminent financial catstrophe is needed to force the other players into a "decision point". For Germany, on debt relief, and In the case of Greece, to accept the IMF's austerity "measures," -- including raising taxes and cutting Greek pensions and working conditions. However the UK "Brexit" referendum in late June will paralyse European decision making at the critical moment.
Wikileak has the transcripts as PDF
Greece government is not amused according to Greece demands IMF explanation over leaked debt transcript | Reuters
Greece demanded an explanation from the International Monetary Fund on Saturday after an apparent leaked transcript suggested the IMF may threaten to pull out of the country's bailout as a tactic to force European lenders to more offer debt relief.
EU/IMF lenders will resume talks in Athens on Greece's fiscal and reform progress next week aiming to conclude a bailout review that will unlock further loans and pave the way for negotiations on long-desired debt restructuring.
The review has been adjourned twice since January due to a rift among the lenders over the estimated size of Greece's fiscal gap by 2018, as well as disagreements with Athens on pension reforms and the management of bad loans.
frontpaged - Bjinse
IMF plots new “credit event” for Greece — Paul Mason — Medium
So let me decode. An “event” is a financial crisis bringing Greece close to default. Just like last year, when the banks closed, millions of people faced economic and psychological catastrophe.
Only this time, the IMF wants to inflict that catastrophe on a nation holding tens of thousands of refugees and tasked with one of the most complex and legally dubious international border policing missions in modern history.
The Greek government is furious: “we are not going to let the IMF play with fire,” a source told me.
But the issue is out of Greek hands. In the end, as Thomsen hints in the transcript, only the European Commission and above all the German government can decide to honour the terms of the deal it did to bail Greece out last July.
So, does it mean what it appears to mean? Will it matter in setting new austerity targets for Greece?
And will Portugal's new anti-austerity government change anything in the discussions or is it as it appears strictly a matter between Germany, Greece, IMF with the Commission playing some role on the side?