German daily says IMF ‘torpedoed’ European Commission proposal on Greece debt

‘The International Monetary Fund (IMF) has “torpedoed” a recent bailout deal proposed by the European Commission to Greece which was made in an attempt to avoid a potential default by the cash-strapped country, a report says.

German daily Frankfurter Allgemeine Zeitung said the deal that European Commission President Jean-Claude Juncker proposed would have allowed the Greek government to postpone the implementation of cuts to pension payments worth about 400 million euros. Athens would have made similar savings on military spending in return for the proposal. The newspaper said in its Sunday edition that the IMF was against any kind of “bartering.”

There have been “tensions” in the past few days between the European Commission and the IMF over the issue of the Greek financial crisis, the daily stated, citing a “negotiator” as its source.’

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