The IMF last month announced it would revive the seldom-used option of approving a loan "in principle," in order to convince eurozone finance ministers to release desperately-needed new funds to Greece. The latest 8.5 billion euro disbursement from the eurozone loan program for the crisis-hit nation was approved last week, just in time for Athens to avert a default on a seven-billion euro debt payment. The Washington-based IMF has insisted that Greece's debt load is unsustainable and will require significant debt relief from the eurozone. However, Germany has refused to consider more debt relief unless the IMF participated in a loan program, creating an impasse that lasted for many months. The unusual move to approve a loan with no immediate funds was a compromise response, but fund officials insist it is not bending the rules.

Source: The Nation Bangkok July 20, 2017 22:52 UTC