The International Monetary Fund has
called on eurozone ministers to offer Greece debt relief, following the
approval of a new bailout deal.
Greece will receive up to €86bn (£61bn) in loans over the next three years, in return for tax rises and spending cuts.
IMF chief Christine Lagarde welcomed the agreement, but warned Greek debt had become unsustainable.
She said the country needed significant relief "well beyond what has been considered so far".
"Greece cannot restore debt sustainability solely through actions on its own," she added.
The
BBC's Adam Fleming in Brussels says finance ministers will consider
possibly writing off some of the country's debts in the autumn.
The first tranche of loans will be for €26bn.
This will include
€10bn to recapitalise Greek banks and €16bn in several instalments -
the first of which will be for €13bn and will be delivered in time for
Greece to repay about €3.2bn to the European Central Bank (ECB) by 20
August.
European
Commission President Jean-Claude Juncker said the deal sent a message
"loud and clear" that Greece will stay in the eurozone.
It comes at a political cost for Greek Prime Minister Alexis Tsipras, who has faced a rebellion in his left-wing Syriza party.
More
than 40 MPs voted against him when parliament decided on the bailout
agreement on Friday, after all-night talks. He managed to push it
through with the help of members of the opposition.
Dutch Finance
Minister Jeroen Dijsselbloem, who chaired the Eurogoup meeting where
the deal was hammered out, said he was confident it would "address the
main challenges facing the Greek economy".
He acknowledged that
dealing with debt was an important issue, especially for the IMF, but
Germany has so far been vehemently against any debt "haircut" that would
cost creditors billions of euros.
German Finance Minister
Wolfgang Schaeuble told Deutsche Welle radio: "Outright debt forgiveness
doesn't work at all under European law."
Mr Schaeuble added that
there was "a certain amount of room to extend maturities further", but
cautioned: "His room is not very big."
Germany's parliament is to hold a special session on Wednesday to decide on whether to approve the Greek bailout. Third Greece bailout: What are eurozone conditions?
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