Greece needs some flexibility on refugees, IMF chief economist says

The International Monetary Fund’s chief economist said on Tuesday that Europe will need to show some flexibility towards Greece as it deals with a refugee crisis and negotiates a new bailout package.

"There’s certainly going to be a need for more flexibility to tackle the refugee crisis and some support from the broader European community," IMF chief economist Maurice Obstfeld said in a news conference. "It’s a European problem, it’s actually a global problem."

He said the IMF has during its negotiations with Athens called for some debt relief, coupled with fiscal adjustments by the Greek government that would put the country on a path towards debt sustainability. The talks are on hold for the IMF-World Bank spring meetings this week in Washington.

"We’re not taking a stand on each particular component. But we need a program that adds up," Obstfeld said. [Reuters]