The International Monetary Fund said today it would not join a new bailout program for Greece until conditions for debt sustainability, including debt relief and economic reforms, are clearly assured.
"In order to ensure that medium term sustainability, there is a need for difficult decisions on both sides... Difficult decisions in Greece regarding reforms, and difficult decisions among Greece's European partners about debt relief," a senior IMF official said.
Speaking to journalists, the official said the IMF can only support a financial rescue program "that is comprehensive."
"One should not be under the illusion that one side of it can fix the problem," he said.
"What is clear is that it will be some time before the two sides are ready to take these decisions."
The official, speaking on condition of anonymity, reiterated the IMF's stance after the Financial Times reported on a Fund executive board meeting that took place yesterday.
In the meeting, according to the FT report, IMF staff stressed that Athens needed more progress on reforms, and the country's European Union creditors needed more clear commitment on debt relief, before the Fund could join in a proposed new 86 billion euro (USD 93.8 billion) bailout program for the country.
The senior official said today that it was already understood that detailed plans for debt relief would not come for some months during the current first stage of developing the new plan.
"They want to see implementation of the policies before they are willing to discuss debt relief in the necessary details," he said, referring to the IMF board members.
"Everybody understands that the IMF can only begin at that time when these decisions of these two sides are taken," he said, adding that "there is nothing new that we have decided.
