Even the IMF thinks Greece's bailout deal is too harsh

Despite making up one third of the demonised 'troika', the International Monetary Fund has spoken out in favour of Greece.

In the wake of the marathon negotiations which will see the eurozone lend more money to Greece in return for a raft of economic reforms and further public spending cuts, the IMF has said a debt relief deal should be agreed instead.

It said in an analysis on its website that was initially leaked to Reuters, that Greek debt, which it projects will soon hit 200 per cent of its GDP, has become "highly unsustainable".

Greece’s debt can now only be made sustainable through debt relief measures that go far beyond what Europe has been willing to consider so far.

• IMF

Greece currently owes roughly 10 per cent of its sovereign debt to the IMF - of which it has defaulted on two repayments.

It's thought the IMF's analysis could make the new deal - which calls for pension cuts, tax increases and the handing over of state assets to private control - even harder for Alexis Tsipras, the Greek prime minister, to push through parliament on Wednesday.

He had campaigned against almost identical measures in last week's referendum, but with the country on the brink and the eurozone creditors seemingly immovable, decided to partly reverse his position.

Tsipras now faces rebellion from hard-liners within his own Syriza party, as well as possibly from the Greek people who voted comprehensively against further austerity.

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