Christine Lagarde, director of the International Monetary Fund (IMF), says Greece should be granted the extra two years it is requesting to meet the fiscal targets laid out in the March bailout plan.
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The IMF is seeking ways to help Greece other than offering more funds, as it did for Portugal and Spain.
Instead, it wants commitments from European officials to allow Greece to write off debt or provide additional funds before disbursing the IMF’s share of the bailout agreement offered in March.
Her pleas come as Greece’s debt levels are projected to increase to 179.3% of gross domestic product (GDP) in 2013. The IMF has set a goal of 120% of GDP by 2020.
The purpose of that goal is to ensure that Greece can stand on its own
without continued support from external sources.
Extending the targets would broaden the gap in financing Greece needs to avoid default. Officials say that could add another €20 billion to the bailout package.
It may take a complete restructuring of Greece’s debt to get the country back on track
. Lagarde urged courageous and decisive action because uncertainty in the global economy is holding back investment and job creation.