IMF asks Greece to cut pensions and hike VAT Source: Tanjug

ATHENS -- IMF Director Christine Lagarde has suggested that Greece should reduce pensions and increase VAT, the Greek media are reporting.

(Beta/AP, file)

Lagarde also welcomed the confirmation she received from Greek Finance Minister Yanis Varoufakis that Greece will on April 9 pay back EUR 450 million of its debt to the Fund.
She further noted that the IMF "remains committed to cooperation with the Greek authorities to help Athens return to a sustainable path of economic growth and employment."

Lagarde "agreed with Varoufakis that effective cooperation is in the interest of all, and at the same time pointed out that continued uncertainty regarding the bankruptcy of Athens is not in the interest of the country."

However, the Greek Reporter website said that during the meeting in Washington on Sunday that lasted two and a half hours, Lagarde suggested that Greece should cut pensions and hike VAT -a measure that the government in Athens decisively rejected and which the minister himself repeatedly said would be "counterproductive for the country."

EU and IMF experts are studying a reform plan proposed last month Greek Prime Minister Alexis Tsipras in an effort to secure the payment of a EUR 7.2 billion tranche of the aid package that is worth a total of 240 billion.

However, until it reaches an agreement with its creditors, Greece is left without access to the remaining funds from the package.

The government in Athens hopes to soon get the "green light" for its proposed reforms, which would unblock the the money and allow it to avoid bankruptcy and pay salaries and pensions.