IMF said Greece needs 'unconditional' debt relief from EU creditors

Greece and its European Union creditors are locked in talks on how to reduce the country's debt burden, which the International Monetary Fund (IMF) said must happen if it is to contribute any more of its own fundsA new IMF report on Greece’s financial situation said the country needs unconditional debt relief from European Union creditors over the long term to rebuild its financial strength. The International Monetary Fund’s debt sustainability analysis (DSA) released Monday also said that the relief needs to be deep through at least 2040, noting the country’s limited prospects for achieving significant economic growth and a fiscal surplus. The DSA said Athens faces substantial challenges to achieving even the modest goal under a proposed debt restructuring of a primary budget surplus, which excludes debt service, of 1.5 percent.

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