The IMF was negotiating with Greece austerity and bailouts while knowing that Syriza wanted to initiate debt relief five months ago. Since 2010, the IMF has had in their possession Debt Sustainability Analysis, which would push Greece even further into debt.
This document was on the verge to become public but it was somehow covered up. It is unknown whether Christine Lagarde is responsible for this cover up. And now, the IMF lost great amount of trust in the world.
Another mistake was made by Mario Draghi who decided to close down banks in Greece.
Based on all this, the only solution for Greece was to hold a referendum, as Alexis Tsipras refused to sign a deal that did not contain debt restructuring.
It was reported that analysis of Greece’s debt was released in Washington on Thursday and stated that Greece’s public finances will not be sustainable without substantial debt relief, together with write-offs by European partners of loans guaranteed by taxpayers.
In addition to this, it was stated that Greece might need at least €50 billion in additional aid over the next three years to keep itself afloat. Dispute between Brussels and the IMF has been made public by this document.
Greek Prime Minister Alexis Tsipras used this report as a tool to influence voters to say no the referendum. This document serves to prove that Greek debt is not sustainable. It was reported that the US was in favor of publication.
The reason why Troika negotiators kept this information on purpose must be investigated. It is obvious that Europe’s billions are at stake but this does not justify cheating schemes. Angela Merkel was probably familiar with all this.
The only way to make everything right would be to legally prosecute all those responsible for this cover up.
According to analysis of Brett Arends at MarketWatch based on IMF numbers, the biggest mistake for Greece and Syriza would be to remain in the eurozone.
People of Greece are being frightened by stories that life outside of euro will be their ultimate mistake. However, this is not true. Countries like Romania, Turkey, Poland, Sweden, and Croatia have all had better growth rates than Greece. Even Iceland is doing better than Greece and they have suffered the worst financial catastrophe in 2008.
Based on all this, it can be concluded that euro has either caused Greece’s disastrous economic performance or at least failed to prevent it.
Britain was advised during the 1990s to give up the pound sterling and join the euro in order to avoid losing their status and influence. However, Britain kept their currency and now has seen total economic growth of 67%, while countries with the euro as currency have 40% according to the IMF.
When it comes to Greece or any other similar country, its central bank should be the lender of last resort. And this crisis would never have happened if Greece had not been a member of the eurozone. Greece is the victim of big countries which have unloaded heir failing financial systems onto the shoulders of the smaller country and used it for their own benefit.