The International Monetary Fund questioned the ability of Greece to deliver on promised bailout overhauls and warned in its starkest language yet that the eurozone must commit to debt restructuring to ensure the program will work.

Le FMI met en doute les solutions Germaniques au problème Grec

The IMF’s warning—made in a three-page paper circulated to eurozone officials over the weekend and published more broadly Tuesday—is a reality check for Europe and Greece about the political and economic commitments needed from both sides.

Il le fait publiquement ce qui a un sens

“The dramatic deterioration in debt sustainability points to the need for debt relief on a scale that would need to go well beyond what has been under consideration to date—and what has been proposed by” eurozone authorities, the IMF said in its latest assessment of Greece’s economy.

La dette est dramatiquement non soutenable

The IMF’s dour debt assessment is a clear warning that the fragile bailout accord hasn’t removed the risk of a Greek exit from the eurozone and that the IMF needs a strong commitment for debt restructuring from the eurozone to participate. It could also bolster German Finance Minister Wolfgang Schäuble’s argument that a Greek exit from the eurozone may be a better alternative than the bailout as Berlin considers whether to back another round of emergency financing.

Le FMI veut une restructuration , ce qui renforce l’idée de Schauble que le Grexit était une bonne solution

The IMF has repeatedly warned eurozone officials in recent days that Greece will need more debt restructuring than originally thought as capital controls asphyxiate its already-weakened economy. Under the tentative eurozone deal reached early Monday, officials say they would consider debt maturity extensions and rate reductions if Greece delivered on promised economic overhauls and budget cuts.

L’extension des maturités ne sera pas suffisante

But the IMF said that even extending debt maturities by decades might not be enough to put Greece’s debt back on a sustainable path after the ravages of capital controls.

The eurozone’s failure to provide a stronger commitment on restructuring could jeopardize the proposed bailout as it may prohibit IMF involvement.

Le refus de restructurer des  Allemands pourrait empêcher le FMI de participer au sauvetage

The currency bloc’s commitment so far is “not very concrete,” a senior IMF official said. “It’s somewhat weak.”

“We have made it very clear that before we go to the board, we need a concrete and ambitious solution to this debt problem,” the official said.

The IMF said one option was “a very dramatic extension” of Greece’s debt. Cutting rates and delaying the grace periods of the entire stock of European debt, including new assistance, by 30 years could kick Greece’s debt burdens well into the second half of the century, when a new generation of Greeks would bear the costs of the current era.