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Greece could spark second global downturn - IMF

The IMF warns that the Greek debt crisis needs to be resolved before it spirals.

Image: Katie Collins/PA Wire/Press Association Images

THE IMF IS still warning about the impact of the eurozone’s debt crisis could overwhelm recovery efforts.

The organisation called on the EU to get on with resolving the Greek debt crisis before contagion spreads throughout the eurozone and causes a second global financial crisis.

The Guardian reports that the warning is the starkest made yet about the Greek situation. The IMF’s statement came as EU finance ministers said Greece would not receive the next €12bn payment of its current bailout agreement until a raft of austerity measures have been introduced.

The Greek government faces a crucial confidence vote today as it works to pass those measures.

The head of the eurozone finance ministers’ group Jean-Claude Juncker warned at the weekend that a Greek default would have serious repercussions for five countries in particular, including Ireland.

The British Treasury, meanwhile, is considering its options in case of a Greek debt default.

The Telegraph reports that Treasury ministers have admitted to considering contingency plans in case Greece goes bankrupt and British MPs said yesterday that they do not want Britain to play any part in a second Greek bailout arrangement.

Read more: Crunch time for Greece as government faces confidence vote >

Read: Change to Europe’s bailout fund “very good news” for Ireland >

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