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Financial News: Third instalment of IMF loan approved

Δημοσίευση 20 Δεκεμβρίου 2010, 10:32 / Ανανεώθηκε 27 Ιουνίου 2013, 14:55
Financial News: Third instalment of IMF loan approved
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The International Monetary Fund has agreed to release the third instalment of a loan to Greece, amounting to 2.5 billion euro. The decision was taken during a meeting of the IMF board on Friday that carried out a second review of the Greek economy's performance and also discussed the possibility of extending the repayment of the loans to Greece.

The International Monetary Fund has agreed to release the third instalment of a loan to Greece, amounting to 2.5 billion euro. The decision was taken during a meeting of the IMF board on Friday that carried out a second review of the Greek economy's performance and also discussed the possibility of extending the repayment of the loans to Greece.

With the release of the third instalment, the total amount loaned to Greece by the IMF so far comes to 10.5 billion euro.

In statements after the meeting, IMF deputy managing director Murilo Portugal said that the IMF programme in Greece was continuing to yield results and that Greek authorities "commended for their determined implementation of difficult and ambitious macroeconomic policies and structural reforms."

He noted that inflation was falling and competitiveness in Greece was improving while stressing the continued importance of comprehensive and timely reforms to safeguard the impetus for growth and viable levels of public debt.

IMF officials appeared confident that under-execution of the budget will allow Greece to achieve the fiscal targets for the end of the year and that the repercussions of the recently revised deficit figures would be fully offset by the government's intention to continue working toward the original programme targets for 2011.

They underlined the need for more aggressive fiscal structural reforms in order to achieve lasting results, noting that taxation administration and the handling of public finances remained a priority, requiring comprehensive action plans with specific deadlines for reforms in state enterprises, the health sector and others.

Emphasis was also given to labour reforms, such as opening closed professions and market deregulation in tourism and the retail sector.