The International Monetary Forum (IMF) has this morning sparked financial shockwaves through Europe by announcing that Greece may necessitate a full moratorium on debt payments for 30 years or more.
According to a report published by the IMF, debt sustainability in Greece is no longer viable, and total debt relief well into the future may be needed to allow the country get out of the austerity and recession cycle that it’s currently trapped in.
If left unchecked, Greek public debt will spiral into 200pc of GDP over the next two years. This compares with 177pc just two weeks ago.
Due to the sustainability issue, the IMF have announced that it will not take part in any rescue package for Greece unless Germany and creditors agree to the massive debt relief.