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Ep 23 ft. Lee Buchheit, Joyce Chang, and Jeromin Zettelmeyer
Clauses & Controversies
The IMF Has to Conclude That the Country's Debt Is Sustainable
In this engaging discussion, the question arises as to whether the IMF will cooperate in providing further relief. The concern is that the IMF may refuse to intervene in private contractual clauses. However, it is noted that the IMF's involvement is crucial for credibility. The short answer is that the IMF staff must determine if the country's debt is sustainable before recommending a program to its executive board.
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