International Monetary Fund releases €2.5 billion for Greece
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