IMF: No haircut for Greek debt, more reforms needed

Managing director of the International Monetary Fund, IMF, Christine Lagarde, arrives at the chancellery in Berlin, Germany where she will meet German chancellor Angela Merkel, Wednesday, Feb. 22, 2017. (Michael Kappeler/dpa via AP) (The Associated Press)

Managing director of the International Monetary Fund, IMF, Christine Lagarde, left, meets German chancellor Angela Merkel, at the chancellery in Berlin, Wednesday, Feb. 22, 2017. (Michael Kappeler/dpa via AP) (The Associated Press)

International Monetary Fund head Christine Lagarde says she sees no need for a "haircut" of Greek debt but says that Athens needs to make "significant progress" on reforms.

Lagarde told Germany's ARD television Wednesday the IMF was "much more confident after the progress made by the Greek authorities" but that reforms were urgently needed in the country's pension and income tax systems.

She says "at the present time, no haircut is needed. But significant cooperation on the maturity and the interest rates will be needed going forward."

Athens agreed Monday to implement further reforms beginning in 2019, after the country's current third bailout has ended.

Greece and its European creditors are in talks over what reforms Greece must make to keep tapping bailout loans.