A new International Monetary Fund proposal set forth regarding Greece’s debt crisis is demanding some pretty major changes to the terms of Greece’s loans— much more than Germany and other European partners will ever agree to.
The Wall Street Journal reported that the IMF’s demands include a clause that frees Greece from loan payments until 2040, giving the struggling nation an opportunity to rebuild after years of crippling austerity and recession.
The IMF also wants Greece’s interest rate on its eurozone loans to be fixed for 30 to 40 years at its current average level of 1.5%, with all interest payments postponed until loan payments are due in 2040.
The new IMF demands will, no doubt, complicate things between the fragile partnership of Greece’s lenders, led by Germany, which has agreed time and time again that debt relief for Greece is out of the question, according to The Wall Street Journal story.
