WASHINGTON (Sputnik) — Greece was one of the countries worst hit by the 2008 financial crisis. Its overall debt stands at $350 billion, $270 billion of which the country owes to the European Central Bank, the IMF and some eurozone countries.
“We have always advised that that program walks on two legs: one leg is about significant reforms and fiscal consolidation… and the other one is debt restructuring, which we believe is needed in the particular case of Greece. That analysis has not changed.”
On Sunday, 61 percent of Greeks voted to reject international creditors’ proposed austerity in exchange for new funds.
Lagarde said the IMF remains fully engaged with the Greek government in order to find the solution that will help restore stability, growth and debt sustainability in Greece.
“Greece is in a situation of acute crisis, which needs to be addressed seriously and promptly,” she added.
On Tuesday, European Council President Donald Tusk said Greece has until Thursday to submit a plan on reforms in order to receive a bailout package.
