Sunday, July 3, 2011

International Monetary Fund (IMF) Eurogroup Release Vital Loans to Greece

The International Monetary Fund (IMF) said it welcomed the Eurogroup's commitment to a financing strategy on debt-ridden Greece.

Eurogroup finance ministers decided on Saturday to release the fifth tranche of loans to Greece to avoid an immediate default of the country.

«We look forward to continue working with the Greek authorities and the European partners in support of the economic program that will contribute to restoring fiscal sustainability, safeguarding financial sector stability, and boosting competitiveness to create the conditions for sustained growth and employment,» noted Atkinson, IMF's chief spokeswoman.

The 12-billion-euro (17.38-billion-U.S.-dollar) tranche of the four-year 110-billion-euro bailout pact that Athens secured last year to avoid default and a supplementary package under discussion over the past few weeks, are considered as essential to the rescue of the country from economic collapse.
The IMF is expected to approve its share of 3.3 billion euros (4.75 billion dollars) of the fifth tranche of loans next week.

But some economists insist that even a second bailout plan would not be enough to put Athens back on track since its debt load, equivalent to 150 percent of the country's gross domestic product, is just too heavy.

In order not to miss anything of importance concerning the situation in Greece, here’s the list of main events of the near future prepared by economic columnists at The Guardian.

Monday 11 July. Finance ministers from across Europe meet on the Greek issue.  

Friday 15 July. Greece has to repay 2.4 billion euro of debt and could default if it has not received the 12 billion euro aid tranche.

Tuesday 19 July. 900 million euro of debt must be repaid.

Wednesday 20 July. 1.5 billion euro of debt must be repaid.

Friday 22 July. 1.6 billion euro of debt must be repaid.

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