IMF: Greece needs 'long' grace period on debt payments from EU

The IMF said today that Greece would need a lengthy period free from debt payments to achieve sustainable finances if the European Union does not agree to cutting the debt up front.

"It is possible to restore debt sustainability without upfront haircuts, although this would involve providing very concessional loan terms including long grace and maturity periods and very low interest rates," IMF spokesman Gerry Rice told reporters.