IMF chief downplays Greek political conflict, Chinese stock sell off

The head of the International Monetary fund on Wednesday downplayed Greek domestic political resistance to the country's bailout package, saying the debt-racked country's actions to implement reforms are more critical.

"I have been in politics myself,"  IMF Managing Director Christine Lagarde said during an online news conference. "There are lots of things you say. What matters is what you do."

Earlier this month, the IMF and Greece's other creditors — the European Central Bank and European Commission — approved a new $95 billion bailout program for Athens in exchange for painful budget cuts, tax increases and economic reforms.

The 11th-hour agreement appeared to avert Greece's potential exit from the eurozone and could allow it to make billions of dollars in debt repayments as soon as next month.

Although Greece's parliament approved the measures, Prime Minister Alexis Tsipras' Syriza party members voted against the plan and critics have questioned the country's commitment to carry it out.

Lagarde echoed the findings of a recent IMF report that said Greece's total debt of more than $300 billion should be restructured to put the country on a viable fiscal and economic path.

"For Greece to succeed, significant debt restructuring should take place," she said.

Lagarde also played down China's recent stock market sell off, which has roiled U.S. and global markets. She cited some estimates that the country's stock market is still significantly overvalued and said the volatility is unlikely to affect China's economy.

"We believe the Chinese economy is resilient and strong enough to withstand significant variations" in market prices, she said. She said the episode would not affect the IMF's plan to include the renminbi in its Special Drawing Rights currency basket, which facilitates currency exchanges.

Lagarde noted the global economy is on track for 3.3% growth this year and the IMF is forecasting 3.8% growth in 2016.

"We have a recovery but it's fragile, it's unbalanced and there are downside risks," she said.