Greek economy and taxation - WAOW - Newsline 9, Wausau News, Weather, Sports

Greek economy and taxation

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ATHENS, Greece (AP) -- The International Monetary Fund says Greece has reached the limit of what it can achieve through increasing taxes, and needs to refocus its austerity program on spending cuts.

IMF mission chief Poul Thomsen said Tuesday that Greece's structural reforms so far have fallen short of expectations, but added it was unclear yet whether new austerity measures would have to be taken next year.

Greece is also in negotiations over the details of a second international bailout that would write off 50 percent of the value of Greek bonds held by private creditors. Thomsen said the IMF has not been asked yet to participate in the second rescue package, but said he was hopeful banks would have a "high participation" in the voluntary bond swap deal.

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