April 11, 2010
IMF Official Welcomes Financial Support Package For Greece
A top official at the International Monetary Fund on Sunday welcomed a multi-billion financial rescue package drawn up by euro-zone finance ministers that Greece may tap if it ultimately needs a bailout to repay its debt.
Dominique Strauss-Kahn, the managing director at the IMF, said in a statement late Sunday that an agreement by Euro-zone finance ministers laying out the terms of the potential financial aid package "marks a very important step."
"The IMF stands ready to join the effort, including through a multi-year stand-by arrangement, to the extent needed and requested by the Greek authorities," Strauss-Kahn said.
He added that the IMF will be holding discussions with Greek, European Central Bank and European Commission authorities in Brussels on April 12 to discuss the matter further.
The statement by the IMF followed news that European governments had come up with a plan that spelled out the terms for Greece to borrow up to EUR30 billion at about 5% interest from fellow euro nations. In addition to that deal, Greece can also seek to obtain cheaper loans from the IMF.
The euro-zone finance ministers did not, however, agree this weekend to actually extend the loans to Greece. To give Greece aid would require the unanimous agreement of the euro-zone leaders. But nevertheless, the deal aims to show that EU members stand behind their past statements of support for Greece.
The Greek government welcomed the proposed bailout, but stressed that it hasn't asked for aid and hopes not to have to use it.
http://www.advfn.com/news_IMF-Official-Welcomes-Financial-Support-Package-For-Greece_42330340.html
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