IMF says seeking assurances from new Greek coalition

The IMF said on Thursday it wants assurances from Greece’s new unity government it was fully committed to implementing economic targets of an IMF/EU-backed bailout program before it disburses the next aid tranche.
“We stand ready to work with the coalition and once broad political support (for) measures under Greece’s economic program is assured, then we can proceed with completion of the fifth review,” IMF spokesman David Hawley told reporters.

Greece’s international lenders, which include the IMF, European Commission and European Central Bank, have warned they will withhold an 8 billion euro aid tranche Athens needs to avoid running of cash next month.

The lenders are set to hold talks over the next several days with a three-party coalition government led by Prime Minister Lucas Papademos, a former vice president of the ECB.

Hawley said the creation of Greece’s new coalition government was “a step to achieving greater political certainty and stability.”
“It is important that the unity government now shows commitment to the implementation of the economic growth,” he added.
Greece’s two-year debt saga has morphed into a major crisis that has now engulfed countries such as Italy, the euro zone’s third-largest economy.

Hawley said it was important that that European authorities move “expeditiously” to implement plans to strengthen a comprehensive crisis management framework.