BERLIN (Reuters) - The International Monetary Fund (IMF) thinks Greece's international lenders will have to increase the size of a third bailout to 90 billion euros ($98.9 billion), Germany's Handelsblatt reported on Monday.
Citing high-ranking EU diplomats, the paper said the IMF believed the increase was necessary due to a recession in Greece. The economy is expected to shrink by between 2.1 and 2.3 percent this year, a Greek government official told Reuters on Monday.
Greece and its international creditors are currently putting the final touches to a multi-billion euro bailout to keep the debt-stricken nation financially afloat and meet an important debt repayment to the European Central Bank within days.
Up until now, it had been expected that Athens would receive up to 86 billion euros in fresh loans.
The paper said the IMF was at odds with its European partners over the size of the bailout, with the global lender pressing to reduce the savings Greece must make and increase the amount of loans, according to one EU diplomat.
The IMF also thinks a Greek primary surplus target -- before interest payments -- of 3.5 percent of national output by 2018 at the latest is unrealistic, the paper said.
($1 = 0.9100 euros)
(Reporting by Caroline Copley; Editing by Gareth Jones)
