Emerging markets write off Greece as a basket case

Paulo Nogueira Batista, the IMF representative for Brazil and eight other South American and Caribbean countries, said that although he voted to approve the package last year, “Our chair was very skeptical about the sustainability of the program from the very beginning,” he said in an interview.

“We expressed serious concerns since the first meeting about Greece,” he said, adding, “That’s intensified… it’s only gotten worse.”

He’s not alone. Arvind Virmani, IMF board member for India and three other South Asian nations, believes Greece, among “European countries with severe fiscal problems,” is insolvent, basically unable to pay back its debt obligations. In a June policy paper he says was written representing his personal views and not those in his official capacity, Virmani said, “Unless we solve the solvency problem per se, conventional Breton Woods programs will only postpone the day of reckoning.” WSJ

I guess the idea is to use the IMF loans as a disguised grant to help Greece go through default.