Greek Debt: Lagarde Backs Down On Debt Haircuts

Beauty & the Beast go can-kicking, Part IV

Last Bastille Day (as it happens) IMF Wunderbint Frufru Lowgrade signed her name to a swingeing IMF note that had the following to say about Greek debt:

Just to be clear, she was saying either 30+ years grace, or more support for Greek investment, or deep, upfront haircuts. The Wheelie Wolfman having snarled at the idea of forgiveness, Mme Lagarde changed her tune two days ago to say:

“We are talking about extending maturities, reducing rates, (making) exemptions for a certain period of time. We are not speaking about cancelling debt.”

So that left economic investment support or at least 30 year grace periods across the debt. Guess what?

1. She and Frau Doktor Mirakle have reached an agreement, but the details of it are missing, presumed killed in action.
2. She still is not up for confirming any IMF involvement in Bailout 3.

I’ll give anyone 10-1 that the details turn out to bear little or not resemblance to the Note.

Earlier at The Slog: China’s Shanghai support running out of steam

Filed under: Greek Debt Tagged: Angela Merkel, LAGARDE BACKS DOWN ON DEBT HAIRCUTS, Wolfgang Schäuble