IMF official warns of renewed Grexit fears

The International Monetary Fund warned that Greece could face renewed fears that it will exit the eurozone in the absence of a credible plan for debt sustainability and pension reforms.

“We have yet to see a credible plan for how Greece will reach the very ambitious medium-term surplus target that is key to the government’s plans for restoring debt sustainability. This emphasis on credibility is crucial for generating the investor confidence that is critical to Greece’s revival. A plan built on over-optimistic assumptions will soon cause Grexit fears to resurface once again and stifle the investment climate”, Poul Thomsen, head of the IMF’s European Department wrote in a blog.