IMF releases 2.2 billion euro in aid for Greece
Baku, December 6 (AZERTAC). The International Monetary Fund on Monday agreed to release a 2.2 billion euro ($2.95 billion) aid disbursement to Greece, part of a three-year IMF-EU bailout package to help the debt-stricken country avoid bankruptcy. "The executive board of the International Monetary Fund today completed the fifth review of Greece`s economic performance under a program supported by a three-year Stand-By Arrangement for Greece," the IMF said in a brief statement. The disbursement brings to 20.3 billion the sum paid out to Greece so far under the 30 billion euro IMF loan agreed in May last year. It is part of a bigger 110 billion euro rescue package for the country. The approval of the latest aid tranche followed assurances by Prime Minister Lucas Papademos and his new unity government that the country would stick to terms of a debt reduction deal. Last week, European leaders approved an 8 billion euro tranche for Greece. An IMF mission will travel to Athens between December 12 and December 16 for preliminary discussions with the new coalition on economic policies. IMF Managing Director Christine Lagarde urged the new unity government to implement agreed policies and said fiscal adjustment was the most pressing challenge for Prime Minister Lucas Papademos` new coalition government. The new government should use its wider mandate to steadfastly implement the program, which is the best way to help Greece manage the risks it now faces," she added. An IMF mission will travel to Athens from December 12 to December 16 for preliminary discussions on economic policies. Still, Lagarde said economic reforms had to be speeded up to improve Greece`s competitiveness through productivity growth. She also said private sector involvement and prolonged financial support at low interest rates for Greece from its European partners was essential to cut its debt burden. Lagarde said a high participation rate was needed in a proposed Greek bond exchange by private creditors to ensure continued IMF support and to meet financing needs by the country. The government`s privatization program could deliver investment, growth and cut Greece`s debt, she added.
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