Aug 16 German Chancellor Angela Merkel said  that she expected the IMF to participate in a new rescue package for Greece, saying the Washington-based institution’s chief Christine Lagarde had promised to lobby for this with the IMF board.

“The IMF took part in the negotiations. It suppports (the Greece deal),” Merkel told German public broadcaster ZDF. “I have no doubts that what Mrs. Lagarde said will become reality.”

Merkel ruled out a so-called “haircut” on Greece’s debt but said there were other ways to provide relief by extending debt maturities and reducing interest rates.