German Spokesperson Carefully Parses Answer

Germany sees no risk of IMF pulling out of Greek aid efforts | Reuters.

The headline from Reuters leads one to believe that “Germany” does not think that the IMF will pull out of the Greek aid deal.

Actually, an IMF withdrawal is  on the table.The Fund is only allowed to disburse aid to countries that remain on a sustainable path to debt reduction, and Greece is not.

The risk of an IMF exit from the process is small. Any sudden moves could create a market panic, and no one wants to be responsible for that disaster.

Even the German spokesperson knows that the risk is there and parses her words carefully:

“I know of no IMF threat to pull out of the aid programme for Greece,” Kothe told a news conference, adding that the Fund would continue “to strive for a solution for Greece”.

She doesn’t know of an IMF threat to withdraw is much different from the headline stating that Germany sees no risk of one. Of course she doesn’t know anything. She is a low level apparatchik in the German Finance Ministry. If she really knew something, she could not be a spokesperson.

 

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