Brussels, 31/07/2013 (Agence Europe) - In its follow-up report published on Wednesday 31 July, the IMF changed vocabulary when discussing the best way of reducing the burden of Greek debt. Against a backdrop of mounting concerns regarding the sustainability of Greek debt becoming too much for consumer confidence, the Washington-based institution recommended that the Europeans look at reducing this burden in such a way as to “bring about a faster reduction of the debt than currently scheduled”. In its previous report, the Fund spoke of a “more head-on approach” (see EUROPE 10863) to this reduction of Greek indebtedness. Currently, the eurozone members are looking instead at reducing the interest rates on the loans granted and extending the term for the repayment. In this report, the IMF pointed out that the additional measures necessary to bring Greek indebtedness down to 124% of GDP by 2020 are estimated at 4% of GDP, as indicated in the follow-up report of the Commission from December 2012. According to the IMF, these measures will be necessary in 2014 or 2015. The eurozone should open the debate in April 2014, once the budgetary performance of the country has been announced. In June 2013, a Commission source, when asked about the need for a procedure to give immediate results, such as simply writing off some of the debt, stressed that the agreement concluded by the eurozone in November 2012 came as part of a long-term strategy to reduce the debt burden, getting it down to 124% by 2020 and substantially below 110% by 2022 (see EUROPE 10863). Whilst the IMF is concerned that excessive debt will have a negative impact on investor confidence, the eurozone believes that, if any more debt were written off (following the PSI of spring 2012), this could make people unwilling to invest in Greek bonds, according to a recent statements by the German finance minister and the president of the Eurogroup (see EUROPE 10887). The Europeans will also need to find a way to plug a funding gap of €4.4 billion at the end of 2014 and €6.5 billion in 2015, the Fund said. (EL/transl.fl)