Greece - IMF Germany clash

Head of the International Monetary Fund, Christine Lagarde backs calls to give Greece more time in the implementation of drastic financial cuts plan.

During the financial forum in Tokyo Japan, the former French finance minister said that the idea of the duration of the liabilities for Athens may be a better way than the "iron hand" to Greece to meet the crisis plan financial meltdown.

But Germany, Greece's largest lender rejected the idea put forth by Lagarde. German Finance Minister Wolfgang Schaeuble said that Greece and
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its international lenders should stay plan previously achieved, which translates into the implementation of reforms in terms of financial cuts provided under this plan.

Greece urged to two years duration of the time to carry out reforms and financial cuts required by its lenders, including the EU, ECB and IMF, arguing that it is impossible the implementation of these reforms in the fifth consecutive year of recession and when forecasts are not optimistic about next year.

The Greek economy is expected to shrink by 6.5 per cent for 2012, about 2 more points from initial forecasts, while the recession forecast for 2013, but more moderate figures. Unemployment has become gangrenën society. Authorities published the latest data for July, where the unemployed make up 25.1 percent of the workforce, and what is worse, over 50 percent of this category are young.