Heather Stewart writes: Christine Lagarde has warned that Greece needs “significant” debt relief – laying down the conditions for the IMF to take part in the third bailout. She said any rescue plan for Greece will be unworkable without some form of debt relief.

“For any programme to fly, a significant debt restructuring should take place.”

Lagarde added that a rescue plan would have to involve “four legs”:

• sensible fiscal targets, that are delivered
• structural measures to open up the Greek economy
• sufficient financing to make the programme workable
• debt restructuring

Lagarde added that the IMF would be looking at what the Greek government does, not what it says, promising to disregard what she called political “noise”, and focus on “deeds, not creeds”.