The International Monetary Fund approved a 3.2 billion euros (4.6 billion U.S. dollars) paid to Greece as part of a joint loan agreement with the EU, buying time for politicians to make a crafts second rescue package and avoid the first national bankruptcy in the euro area.
Obligations of Greece to secure the loans are “providing important results,” IMF Managing Director, Christine Lagarde said in a statement today in Washington. But “sustainable fiscal consolidation is necessary to get the deficit too high, anchored and productivity-enhancing reforms should be accelerated to resume growth.”
The decision follows last week to release the approval by EU ministers to € 8700000000, that discussions about how banks and insurance companies into a new package for Greece, not markets again next year as rising borrowing costs should continue. The possibility of involving the private sector has been criticized by the European Central Bank, because it is part, could trigger default.
“Greece is the burden of debt depends primarily on the timely implementation and coherent adjustment program, with no room for slippage and ongoing support of the European partners and the involvement of the private sector,” said Lagarde.
The IMF, whose loans to Greece under the first joint 110 – billion package is the second highest in the history of the fund is not publicly discuss his involvement in a bailout seconds.
The rudder
Instead, leaders such as John Lipsky, the acting director general until Lagarde took the reins this week, have agreed to focus on measures needed to pay today. These include the sale of state assets and assured that the funding gap to the inability of Greece to the left to the market the next year will be filled again.
Greek Parliament adopted new budget cuts last week, the governments of the eurozone political cover to release the funds.
The prospects for turning the legislation economies indeed be supported by a lack of opposition and hostility from the public, the more clouded than burned in fighting between insurgents and police spraying tear gas outside parliament for Athens last week.
Lagarde said today, to sell the government’s plan for € 50000000000 assets by the year 2015, is a “decisive step” in reducing debt and promoting growth.
“Transparency is very ambitious, the creation of an independent agency for privatization should help to make and implement timely” While the goal, she said.
Repay debts
Greece received a bailout in May 2010, seven months after the country’s estimated budget deficit amounted to nearly 13 percent of gross domestic product is three times higher than previously expected, and four times the limit of the EU.
Greek debt, already at a record 142.8 percent of European gross domestic product is expected to increase by 166.1 percent next year, predicts the EU. A request for a budget deficit which is about 10 percent of GDP cut further in the third year of recession.
Both payments will contribute to Greece over € roll of bills paid between 15 4000000000 in July and 22 July, plus about € 3 billion of coupon payments per month, according to Bloomberg calculations.
Greece stated that the IMF as “on track” in February, waved, of course, in April with the announcement of a government minister deficit higher than expected for 2010 and forced the Premier George Papandreou to wring savings additional budget this year.
