ATHENS: The International Monetary Fund (IMF), a key creditor in Greece’s bailout, will not participate in any further rescues of the debt-wracked country, Germany’s finance minister told a Greek newspaper Saturday.
“We have all acknowledged (euro zone and the IMF) that the third Greek (bailout) payment will be the last with the participation of the IMF,” Wolfgang Schaeuble told Greek daily Ta Nea.
The German finance chief has been inflexible on the issue of Greek debt relief, in opposition to the IMF, which says it needs to be done to breathe new life into Greece’s floundering economy.
An agreement was reached last month to pay the third tranche of Greece’s €86 billion ($97 billion) bailout, after being held up for months by a row over its need for debt relief which has pitted bailout-weary Germany against the IMF.
After participating in two previous international loans to save Greece from bankruptcy, the IMF is still set to take part in a third bailout. But for the moment, it has held back its contribution over the issue of whether the euro zone will decide to ease Greek debt — currently at 180 percent of gross domestic product (GDP).
Since 2010, the international bailouts accompanied by tough austerity measures “have obtained some results but have not resolved the problem,” said Schaeuble, who hopes a solution can be reached by the end of the current program in 2018.
Under pressure especially from Berlin, Greece’s 18 other euro partners have not yet broached the issue of debt relief, preferring to push that hot-button topic to next year.
But IMF chief Christine Lagarde has warned that Greece’s debt is not sustainable and that the country requires significant debt relief from Europe.
In the interview, Schaeuble pointed to the European Stability Mechanism (ESM), a bailout fund for euro zone countries, as a way to respond to the future needs of countries sharing the single currency.
Meanwhile, in another Greek newspaper, ESM chief Klaus Regling appeared to share that view, saying there is “a discussion in Europe on reinforcing the monetary union.”
Speaking to the Efimerida ton syntakton (Journal of Editors), Regling said the euro zone had to become “less vulnerable” and that he was certain that “the ESM will play a very important role” if a new financial crisis arises.
“We can assume some of the responsibilities the IMF has undertaken over these past few years and I think there is a wide consensus for that in the future,” he said.
“If the reforms continue over the next 14 months, Greece will be able to return to the international markets,” he added.
IMF to participate for ‘last time’ in Greek bailout: Schaeuble
IMF to participate for ‘last time’ in Greek bailout: Schaeuble
GCC chambers plan Gulf Guarantee project to boost intra-regional trade
DAMMAM: The Federation of GCC Chambers, in cooperation with the Customs Union Authority, intends to launch the Gulf Guarantee Project to provide a unified mechanism for exports and trade transactions and to enhance the efficiency of intra-GCC trade, which reached about $146 billion by the end of 2024, Saleh Al-Sharqi, Secretary-General of the federation, told Al-Eqtisadiah.
Al-Sharqi said, on the sidelines of his meeting with media representatives at the federation’s headquarters in Dammam, that the initiative represents a qualitative leap in supporting intra-GCC trade by facilitating transit movement through a single point, contributing to cost reduction, accelerating the flow of goods, and enhancing the reliability of trade operations among Gulf markets.
He explained that the federation recently launched a package of strategic initiatives, including the Tawasul initiative aimed at strengthening communication among Gulf business owners and supporting the building of trade and investment partnerships, in addition to the Gulf Business Facilitation initiative, which seeks to address challenges facing Gulf investors and traders, simplify procedures, and improve the business environment across member states.
He noted that these initiatives fall within an integrated vision to address obstacles hindering investment and intra-regional trade flows by developing regulatory frameworks, activating communication channels between the public and private sectors, and supporting Gulf economic integration in line with the objectives of the Gulf Common Market.
In a related context, the Secretary-General affirmed the direction of GCC countries to leverage artificial intelligence technologies to support trade and investment flows, stressing the importance of establishing a unified Gulf committee for artificial intelligence to coordinate efforts and exchange expertise among member states. He said the federation will support this direction in the coming phase, drawing on leading international experiences, particularly the Chinese experience in this field.
Regarding the recently announced electric railway project between Riyadh and Doha, Al-Sharqi revealed that technical and advisory committees are working to complete the necessary studies for the project, confirming that it will positively impact passenger and freight movement between the two countries, enhance Gulf logistical integration, and support regional supply chains.
On investment opportunities available to Gulf nationals in the Syrian market, he said the federation is coordinating with private sector representatives in Syria to overcome obstacles that may face the flow of Gulf investments, in addition to working to provide adequate guarantees to protect these investments and ensure a stable and attractive investment environment.
In response to a question from Al-Eqtisadiah about the impact of tariffs imposed by the US on imports of iron, steel, and aluminum, he said that economic and technical committees in GCC countries are continuously monitoring the repercussions of these tariffs on the Gulf private sector, assessing their effects, and taking the necessary measures to protect it from any potential negative impacts.
Al-Sharqi also pointed to the launch of two specialized committees in the transport and logistics sectors and in real estate activities, given their pivotal role and active contribution to Gulf gross domestic product, stressing that developing these two sectors is a fundamental pillar for enhancing economic diversification and increasing the competitiveness of GCC economies.
He added that during the past year the federation held more than 40 meetings and official engagements with Gulf and international entities, participated in nine regional and international events to strengthen the presence of the Gulf private sector on the global stage, and signed 12 agreements and memoranda of understanding with Gulf, regional, and international entities to open new horizons for economic and investment cooperation.
During the same year, the federation launched four digital platforms to support the Gulf private sector, bringing the total number of its digital platforms to eight serving the business community across member states.
The Secretary-General affirmed that the federation will continue working with relevant economic entities to unify procedures and regulations, reduce non-tariff barriers, and accelerate mutual recognition of products and standard specifications, in a way that enhances the competitiveness of the Gulf economy and supports the growth of intra-GCC trade.
