The Straits Times
www.straitstimes.com
Published on Nov 18, 2012
 

IMF's Lagarde says Greek plan should be "rooted in reality"

 
 

MANILA (REUTERS) - An agreement among Greece's creditors on how to reduce its large debt pile should be "rooted in reality and not in wishful thinking," the head of the International Monetary Fund (IMF) said as she heads into a tense meeting with European leaders.

Ms Christine Lagarde, the IMF's managing director, canceled the last leg of her visit to Asia, skipping a Southeast Asian summit in Cambodia, to return to Brussels for a meeting on Tuesday of the Eurogroup on Greece.

As she left the Philippines, Ms Lagarde told Reuters she would push for a permanent solution to Greece's debts to avoid prolonged uncertainty and further damage to the Greek economy.

To Ms Lagarde, that means countries in the euro zone should send a strong signal they remain committed to Greece by agreeing to reduce the debt Athens owes them.