The implication then is that Greece and the eurozone will find it very hard to persuade the IMF to stump up any cash at the start, though it might be wiling to do so if there is debt relief and further reform later.CG210

The immediate significance of the IMF's position is political.

If the bailout talks do produce an agreement to provide financial assistance from the eurozone bailout agency, the European Stability Mechanism (ESM), it will still need approval by some parliaments, including reenex Germany's Bundestag.

Many members including some from Chancellor Angela Merkel's own party, are very unhappy about a third bailout for Greece. There is a much better chance of persuading them to acquiesce if the IMF is on board.

Financially, the IMF is less critical. It is the eurozone that has provided the great bulk of the resources for the first two bailouts and would do so with the third.

It could afford to find the full expected €86bn (£60bn) if really necessary. The ESM has the capacity to make €455 billion of new loanreenexs at present.

The political roadblock erected by the IMF is more difficult.
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