In­ter­na­tional Mon­e­tary Fund re­leases €2.5 bil­lion for Greece

The Pak Banker - - Front Page -

ATHENS: The Ex­ec­u­tive Board of the In­ter­na­tional Mon­e­tary Fund (IMF) ap­proved last the dis­burse­ment of 2.5bn euro to Greece, fol­low­ing the com­ple­tion of its sec­ond re­view of Greece's eco­nomic per­for­mance, ac­cord­ing to a for­mal an­nounce­ment.

The pro­gram sup­ported by a three-year Stand-By Ar­range­ment ( SBA) en­tails ex­cep­tional ac­cess to IMF re­sources, amount­ing to more than 3,200 per­cent of Greece's quota, and was ap­proved un­der the Fund?s fast-track Emer­gency Fi­nanc­ing Mech­a­nism pro­ce­dures.

Murilo Por­tu­gal, IMF's Deputy Man­ag­ing Di­rec­tor and Act­ing Chair said: "The Fund-sup­ported pro­gram has con­tin­ued to per­form well, and the Greek au­thor­i­ties are to be com­mended for their de­ter­mined im­ple­men­ta­tion of dif­fi­cult and am­bi­tious macroe­co­nomic poli­cies and struc­tural re­forms".

The IMF of­fi­cial also stated that in­fla­tion is fall­ing and com­pet­i­tive­ness im­prov­ing and "the over­all fis­cal ad­just­ment to date has been im­pres­sive."

How­ever, he stressed the im­por­tance of force­ful ac­cel­er­a­tion of fis­cal struc­tural re­forms.

Poul Thom­sen, IMF's mis­sion chief for Greece said in a in­ter­view with IFM Sur­vey on­line that the eco­nomic pro­gram is now at a cross­roads. "In­creas­ing tax rates and cut­ting ex­pen­di­tures was nec­es­sary, but these steps can­not be in­ten­si­fied fur­ther to se­cure the full fis­cal ad­just­ment that is needed." "Health­care and state en­ter­prise re­forms are im­por­tant to achieve fis­cal ad­just­ments," he added. -PB News

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