WASHINGTON: International creditors of Greece could take into account the massive influx of migrants that is further burdening its economy in their discussions, an International Monetary Fund spokesman said Thursday.
"I would expect, imagine that in the context of those discussions... issues of additional fiscal strains that the country may be facing would be discussed," said IMF spokesman Gerry Rice said in response to a question at a news briefing.
Greece, on Europe's front line in the flood of migrants reaching its shores, has asked for aid from the European Commission, the European Union executive arm, to cope with the influx that has brought more than 500,000 people to the country since January.
Greece itself has been mired in economic crisis for several years. In July the country accepted a three-year, 86-billion-euro ($93 billion) European Union bailout that saved it from crashing out of the eurozone, but imposed strict conditions such as fresh tax cuts and pay cuts.
Asked whether the Greek government could benefit from additional aid or reduced budget targets because of the impact from refugees, the IMF spokesman said Thursday he did not have "details".
Jordan, another country flooded with migrants from neighboring Syria, has adjusted its fiscal targets with the support of the IMF.
The Greek government has not called for a readjustment of its economic program, but is seeking a return to a lower value-added tax for the Greek islands feeling the brunt of the migrant crisis.
"The policy discussions with Greece... are ongoing," Rice said, adding that an IMF mission was currently in Athens.
The spokesman also said the IMF mission was evaluating the results of a recent European Central Bank audit of Greek banks, which determined they need an additional 14.4 billion euros to survive potential economic shocks, less than creditors had expected.
"The mission is on the ground evaluating these results and the policy implications," Rice said.
Comments
Comments are closed.