Wikileaks Reveals IMF Plan To "Cause A Credit Event In Greece And Destabilize Europe"

markj113

In a leaked transcript, IMF staffers are caught on tape suggesting that a threat of an imminent financial catastrophe was needed to force other players into accepting its measures such as cutting Greek pensions and working conditions, or as Bloomberg puts it, "considering a plan to cause a credit event in Greece and destabilize Europe."

http://www.zerohedge.com/news/2016-04-02/wikileaks-reveals-imf-plan-cause-credit-event-greece-and-destabilize-europe

http://www.zerohedge.com/news/2016-04-02/greece-demands-explanation-imf-over-leaked-transcript

Mistermeaner

Without clicking the links I'm going to guess this is either (a) old news pre bail out or (b) ollocks

kinger101

As if they Greeks needed any help.

stator

Can't see anything about planning a credit event.
All I can see (on wikileaks, didn't read the other site) is that they say the people only make hard decisions when on the brink of an emergency, like running out of money. Which we all knew anyway.

Generali

Mistermeaner wrote: »

Without clicking the links I'm going to guess this is either (a) old news pre bail out or (b) ollocks

If you prefer a slightly less hysterical version, and an easier one to follow, Bloomberg has the skinny:

http://www.bloomberg.com/news/articles/2016-04-02/imf-discussed-pressuring-germany-on-greek-debt-wikileaks-says

michaels

Generali wrote: »

If you prefer a slightly less hysterical version, and an easier one to follow, Bloomberg has the skinny:

http://www.bloomberg.com/news/articles/2016-04-02/imf-discussed-pressuring-germany-on-greek-debt-wikileaks-says

I presume Germany (in the name of the EU) will decide the EU will make a payment of 2.3bn to Greece in June to help meet the costs of the refugee crisis...just in time for Greece to send the money straight back as a debt repayment.

Can kicked, no politically toxic in Germany debt write off....

mwpt

http://www.imf.org/external/np/sec/pr/2016/pr16149.htm

His Excellency Mr. Alexis Tsipras
Prime Minister of the Hellenic Republic
Athens, Greece

Dear Prime Minister,

Thank you for your letter of April 2, in which you ask about the IMF’s position regarding the program negotiations with Greece.

My view of the ongoing negotiations is that we are still a good distance away from having a coherent program that I can present to our Executive Board. I have on many occasions stressed that we can only support a program that is credible and based on realistic assumptions, and that delivers on its objective of setting Greece on a path of robust growth while gradually restoring debt sustainability.
Otherwise it would fail to re-establish confidence, with the implication, among others, that Greece would soon again be forced to adopt yet more measures. Of course, any speculation that IMF staff would consider using a credit event as a negotiating tactic is simply nonsense.

As you and I have discussed several times, including recently on the telephone, I have been consistent in pointing out that, if it were necessary to lower the fiscal targets to have a realistic chance of them being fully met, there would be an attendant need for more debt relief. In the interest of the Greek people, we need to bring these negotiations to a speedy conclusion.

I agree with you that successful negotiations are built on mutual trust, and this weekend’s incident has made me concerned as to whether we can indeed achieve progress in a climate of extreme sensitivity to statements of either side. On reflection, however, I have decided to allow our team to return to Athens to continue the discussions.

The team consists of experienced staff who have my full confidence and personal backing. For them to be able to do their work, as you have invited us, it is critical that your authorities ensure an environment that respects the privacy of their internal discussions and take all necessary steps to guarantee their personal safety.

Finally, the IMF conducts its negotiations in good faith, not by way of threats, and we do not communicate through leaks. To further enhance the transparency of our dialogue, I have therefore decided to release the text of this letter on our website at https://www.imf.org. I also look forward to any personal conversation with you on how to take the discussions forward.

Sincerely yours,

Christine Lagarde

antrobus

markj113 wrote: »

In a leaked transcript, IMF staffers are caught on tape suggesting that a threat of an imminent financial catastrophe was needed to force other players into accepting its measures such as cutting Greek pensions and working conditions, or as Bloomberg puts it, "considering a plan to cause a credit event in Greece and destabilize Europe."...

You're better off reading the actual leaked transcript.
https://wikileaks.org/imf-internal-20160319/transcript/IMF%20Anticipates%20Greek%20Disaster.pdf

Basically it's quite straightforward. The IMF are saying that they can't get the Greeks to make a decision about taking action to meet their targets. At which point Poul M. Thomsen (who is in charge of the Greece program) notes that the only time the Greeks previously made a decision "was when they were about to run out of money seriously and to default".

Thus the same thing might apply this time around. Everyone will have to wait until there is a 'crisis' sufficient to motivate Greece into actually making a decision.

mwpt

antrobus wrote: »

You're better off reading the actual leaked transcript.
https://wikileaks.org/imf-internal-20160319/transcript/IMF%20Anticipates%20Greek%20Disaster.pdf

Basically it's quite straightforward. The IMF are saying that they can't get the Greeks to make a decision about taking action to meet their targets. At which point Poul M. Thomsen (who is in charge of the Greece program) notes that the only time the Greeks previously made a decision "was when they were about to run out of money seriously and to default".

Thus the same thing might apply this time around. Everyone will have to wait until there is a 'crisis' sufficient to motivate Greece into actually making a decision.

Yes. For some reason - well, we know the reason, people love conspiracy - people choose to interpret that as a statement of intent to cause, rather than an observation. And so fuels the fire.