IMF warns Greece reform plan lacks 'clear' commitments

The International Monetary Fund warned today that Greece's reform plan submitted in exchange for a bailout extension lacked clear signs that the anti- austerity government will follow through on its promises.
In a number of areas, "including perhaps the most important ones," the letter proposing the reforms "is not conveying clear assurances that the government intends to undertake the reforms envisaged," said IMF managing director Christine Lagarde in a letter addressed to Eurogroup president Jeroen Dijsselbloem.
The letter, dated Monday, was released as the Eurogroup of finance ministers approved Greece's list of measures as "sufficiently comprehensive" to begin the process of starting a four-month extension of the debt-riddled country's international bailout, which expires Saturday.

Lagarde said that Greece's list covered the broad topics that should be on the new government's agenda and, in light of this, the IMF would support a Eurogroup conclusion that the list is a "valid starting point".
"We note in particular that there are neither clear commitments to design and implement the envisaged comprehensive pension and VAT policy reforms, nor unequivocal undertakings to continue already-agreed policies for opening up closed sectors, for administrative reforms, for privatisation, and for labor market reforms."
The IMF chief underscored that such commitments and undertakings were "critical" for Greece's ability to comply with the IMF part of the international bailout that includes the European Union and the European Central Bank.

"Thus, it is important for me to emphasise that for the discussions on a completion of the review to be successful they cannot be confined within the policy perimeters outlined in the Government's list," she said.