Eurozone policymakers are seeking backing from the International Monetary Fund for their new bailout offer to Greece, Reuters reported May 31.
The talks with the IMF are expected to take place on the sidelines of a meeting of G-7 finance ministers and central bankers in June, officials involved in the negotiations said. Greece's third bailout ends Aug. 20.
If no deal is agreed by June 4, the IMF is unlikely to take part in the new bailout offer, Reuters reported, citing a senior official involved in the talks.
The IMF took part in the first two bailouts, but declined to join in the third, which began in 2015. The IMF said the eurozone governments, which are now Greece's main creditors, must agree on how to make Greek debt, now at 179% of GDP, sustainable.
Many eurozone countries, especially Germany, want the IMF on board to ensure private investors are ready to lend to Greece again and that it will not seek more eurozone loans.
But Germany does not agree with the IMF view that Greece needs substantial debt relief. The IMF is more cautious on Greek growth assumptions than the eurozone, Reuters said.
Both the IMF and the eurozone, however, agree there should be no reduction in the principal of the debt, but only an extension of maturities and grace periods.
The IMF is also ready to accept a eurozone condition that the bailout agreement be rendered null and void if Greece fails to keep its primary surplus at 3.5% of GDP until at least 2022.
