In a critical passage, albeit in coded language, the IMF staff outline major differences with the Europeans:
“While staff emphasised they are not pushing the European partners to consider debt relief, at the same time staff noted the numbers need to add up. In particular it was noted there is an inverse relationship between reforms and sustainability.”
This translates as: the more austerity the Europeans demand, the bigger the chance that Greece defaults on its debts. And the IMF – unlike the EU – cannot sign off on a plan where austerity provokes a debt default. Greek government sources believe the IMF could seek to offload its loans to Greece onto the European Stability Mechanism created during the debt crisis of 2010, if its own rules leave it unable to sign off a deal done this month.