In an attempt to assuage fears that a third bailout package for Greece will not have support from international creditors, German chancellor Anglea Merkel went live on national television today to express confidence in the IMF's involvement.
In an interview on ZDF, she said she had “no doubts” the international creditor would take part, and that there was “room for manoeuvre” so that necessary stipulations could be met.
Christine Lagarde, head of the IMF, said on Friday she would only take part if “concrete commitments” are made for pension reforms and “significant” debt relief.
The IMF will not confirm its involvement right away – it could be as late as October that it agrees to take part. Merkel said relief could be provided to Greece by extending maturities on its debts and reducing interest rates.
Mrs Lagarde, the chief of the IMF, made very clear that if these conditions are met, then she will recommend to the IMF board that the IMF takes part in the programme from October. I have no doubts that what Mrs Lagarde said will become reality.
On Thursday, Greece is due to receive the first part of its €86bn (£61bn) loan, which was approved by Eurozone finance ministers on Friday. But to go ahead, the bailout must also win the support of individual national parliaments, and Germany's vote is taking place on Wednesday – a day before the final deadline for Greece to repay €3.2bn to the ECB.
Although it is very unlikely that the deal will win anything other than majority support from Germany, there has been some opposition from party members within the chancellor's Christian Democratic Union party, with the point made clear that they want support from the IMF.
Last month, 60 lawmakers in her 311-strong caucus voted against even holding talks with Greece on a further bailout, reflecting a growing desire to stop giving help to the beleaguered nation.