WASHINGTON (Reuters) - The International Monetary Fund will not abandon the “troika” underpinning Greece’s bailout, but its participation could vary depending on how the bailout is restructured, Fund Managing Director Christine Lagarde said on Thursday.
“We will not walk away,” Lagarde said during a question-and-answer session at the IMF and World Bank spring meetings. “Our form of participation may vary depending on the commitments of Greece and the undertaking of the European partners, but we will not walk away.”
The IMF, European Commission and European Central Bank make up the troika that has bailed out Greece’s government.
Lagarde said Greece needs debt relief, but that “does not necessarily mean a haircut” on debt principal. She said the IMF was open to an extension of maturities, a repayment holiday or a reduced interest rate on the debt.
Reporting by David Lawder; Editing by Paul Simao