Greece's economic meltdown in 2010 was a subject of special interest for U.S. policymakers, including then-Treasury Secretary Timothy Geithner, according to the latest batch of Hillary Clinton's State Department emails.
The Greek crisis and debt restructuring will be high on the agenda at the G-20 finance ministers and central bank governors meeting in Turkey on Friday and Saturday. The events of 2010 will inform the discussions on the Greek debt over the coming months.
Τhe way the debt relief will be imposed is important. Despite IMF estimates that Greek debt would peak at close to 200 percent of GDP in the next two years, Germany appears to only accept an extension of loan maturities, when Greece wants interventions in the interest rates. The IMF and the U.S. have a special role in the matter.
On this basis, the IMF issued a special note on Tuesday warning that although financial market reaction to the protracted uncertainties surrounding the negotiations for the new Greek program was limited and risks have since diminished significantly, financial stress could re-emerge in the euro zone if the latest rescue plan falters due to political uncertainty or reform fatigue.
A review of Clinton's 15 emails on Greece in in the batch released this week reveals that while the Obama administration supported the IMF's involvement in the 2010 bailout, geopolitical and international security considerations played a big part in America's posture. Concern appeared paramount over EU cooperation on Afghanistan and Iran.