Vital funds
July 9, 2011
The International Monetary Fund (IMF) on Friday released 3.2 billion euros ($4.6 billion) of an emergency loan to Greece, the fifth loan disbursement to Greece that is part of a 110-billion-euro EU and IMF bailout package meant to help the debt-stricken country avoid bankruptcy.
Following a meeting of the IMF's executive board, the global lender's newly elected managing director, Christine Lagarde, praised the Greek government's efforts to climb out from under its mountain of debt. Taking steps to reduce public debt is a condition set out by the EU and the IMF for releasing the funds to Greece.
"The fiscal deficit is being reduced, the economy is rebalancing, and competitiveness is gradually improving," Lagarde said in a statement following a meeting of the board at the IMF's Washington headquarters.
"However, with many important structural reforms still to be implemented, significant policy challenges remain," she said.
Ambitious target
Lagarde also praised Greece for its efforts to raise funds by privatizing government assets.
"While the target of selling 50 billion euros of state assets by 2015 is very ambitious, the establishment of an independent privatization agency should help realize transparent and timely implementation."
The board meeting came less than a week after EU leaders agreed to release the 12-billion-euro fifth tranche of its portion of the bailout.
Last week, the government of beleaguered Greek Prime Minister George Papandreou met the condition for keeping the cash flowing by passing a package of tough austerity measures.
The legislation passed despite fierce opposition from many members of the public. As the lawmakers voted inside the parliament building in Athens, police clashed with demonstrators who oppose the measures.
Author: Chuck Penfold (dpa, Reuters, AFP)
Editor: Martin Kuebler