Despite all attempts to save Greece, the country might yet be forced out of the Eurozone without a deal on its debt and loans, International Monetary Fund Managing Director Christine Lagarde said.
The IMF, along with the European Union and European Central Bank makes up the troika of the EU-IMF-ECB that has put up 240 billion euros ($262.63 billion) but is holding back a 7.2-billion euro ($7.87 billion) installment until the government imposes more austerity.
But Lagarde told a German newspaper that even while a Greek exit from the Eurozone was possible it wouldn’t bring down the financial bloc of 19 countries.
For all that tension, Lagarde said she doubted the government led by Prime Minister and Radical Left SYRIZA leader Alexis Tsipras would be able to come to terms with the troika soon, Frankfurter Allgemeine Zeitung reported.
That contradicts statements from Greek officials, who have said they believed they are close to a deal although so far they are only ones who believe it.
“A Greek exit is a possibility,” Lagarde told FAZ. Such a step would :not be a walk in the park,” she said, but would “probably not” mean the end of the euro.
Lagarde ruled out granting further loans to Greece without a clear reform agreement.
“We have rules, we have principles. It cannot be a half-baked overhaul of the program,” she told the paper, adding this was not something that could be done overnight.