The ex-wife of former Liberal Democrat MP Chris Huhne said there were questions around tax rates to be answered but the IMF would need to support the latest round of bailouts.
The IMF has warned Greece will buckle under the weight of its huge debts, which includes paying over £6billion (€7.4bn) to its creditors in July.
Speaking on All Out Politics on Sky News, Ms Pryce, who was born in Greece and is a former government economic adviser, said the country had slashed its debt “very significantly”.
She said: "The question is has Greece passed the test, but more importantly there is a serious issue about the International Monetary Fund and whether it wants to be involved in this.
Vicky Pryce said Greece had done "amazingly well"
Greece has done amazingly well I mean this is the interesting thing
“It hasn’t been involved so far in this bailout, because it is now arguing that the Greek debt is unsustainable and what to wants is to see either debt relief or even more austerity measures.
“Greece has done amazingly well… it has has cut its debt very significantly.
“It now has a primary surplus in its budget, so basically it is collecting more than it’s spending if you exclude interest payments on the debt.
“So it’s done better than has been expected of it. But there are some issues which are still worrying the creditors which include, if you look further forward, is the fiscal regime the right one to allow Greece to continue to have good fiscal figures coming year after year and one of those issues is, is the tax base wide enough.
Protest in Greece turns violent Wed, November 16, 2016
Protests in Greece turn violent following a protest against the visit of the US president in Athens on November 15, 2016
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“Is the tax threshold too high? Should it come down, Which means it will affect many more people in the population.
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“Of course, if you are a populist government like Syriza you’re very, very worried about doing these extra little bits, which are required for this particular review to be over.”
Asked by presenter Adam Boulton whether some of the Greek debt would need to be written off, Ms Pryce said it could be an option but there had been some positive changes.
The 64-year-old said: “At some point it’s going to have to be looked at. But for the moment, of course, there’s already been some change in terms of the maturity profile, interest rates the Greeks pay, so there’s already been some move to make the pain a lot less.”
Ms Pryce also raised upcoming national elections in France, the Netherlands and Germany and warned candidates in these countries would not want to be seen to offer debt relief to Greece.
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Boulton put it to the economist the only people benefitting from the bailouts were bankers and sovereign governments who had lent the money and were earning from the interest payments.
Ms Pryce, the former Joint Head of the Government’s Economic Service, said: “The truth is the IMF had been expecting the Greek economy to do considerably better than it’s actually done year after year after year. They have admitted it, they’ve got it wrong.
“The measures have not been right for Greece, they’ve been counterproductive but I think Greece too had a lot to do and I think it has reformed but it needs to do quite a lot more to encourage private investment to come in and to start growing.
“So it is two sides really but I do think that the conditions on Greece were too severe.”
Austerity measures and biting reforms pushed on Athens by its neighbouring creditors have taken a heavy toll on the country, combined with high poverty and unemployment, the Washington-based IMF has said.
Public debt is predicted to reach an eye-watering 181 per cent of GDP this year, amid fears the country's fragile situation could again spiral into crisis seen over the summer of 2015.
But Angela Merkel's finance chief has ruled out cutting the amount of money owed by the struggling Mediterranean state.
Wolfgang Schaeuble has insisted creditors must keep the pressure on Greece to meet the strict terms of its bailout programme or kick it out of the single currency.
Athens has been told it would not be paid further rescue funds until a compliance review of terms attached to Greece’s staggering £74billion (€86billion) was concluded.
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