IMF Approves A $28,000 million Euros Loans For Greece

The International Monetary Fund (IMF) said Thursday that it approved a new plan for four years credit assistance to Greece for up to 28,000 million euros, about 36,500 million dollars, following the agreement of the country with their private satisfy creditors.

The Fund said that the Greek authorities may withdraw from and about 2,150 million (1,650 million) of this new credit, approved after Greece restructure its debt with private creditors and is intended to “support the economic adjustment program “the country, according to a statement from the IMF.

Shortly after this announcement, the IMF released its new forecasts for growth in the European country.

Greece will leave behind the recession in 2013, reiterated that the IMF had already made that announcement in December, but its economy will not grow in that year.

The Fund revised sharply lower figures compared to December: according to the Greek GDP would fall 4.8% in 2012 after falling 6.9% in 2011. In December, he felt that the Greek GDP would fall 3.0% in 2012, after falling 6.0% in 2011 and that growth would reach 0.3% in 2013.

Despite some misgivings among members of the Fund at the idea of ​​giving more money to Greece and Europe, and concerns that the political divisions in Athens may impede progress in restructuring its finances, credit assistance to Greece was expected.

After keeping silent on figures for weeks until the European Union could complete a major Atneas removed from the sovereign debt of 107,000 million euros, last Friday the IMF managing director, Christine Lagarde, outlined a plan for a total of 28,000 million, above expectations of the observers.

The loan provided, called Extended Financing Facility (EFF, for its acronym in English) is used to help members who suffer from long-term structural problems.

On Wednesday, the IMF said it would extend the maximum duration of the EFF three to four years.

Past credit granted to Greece by about 30,000 million euros, the IMF came to be disbursed 20300 million. The rest was canceled and included in the new program announced Thursday.

The 20,300 million euros that Athens received must be repaid between 2013 and 2015.

The Fund’s decision culminates several months of protracted negotiations in parallel with the plan that allowed the European aid to the country and the restructuring of debt in private hands.

Greece was often compared with Argentina in the press, which in 2001 declared a default after receiving lines of credit of the Fund in the years before the moratorium.

The IMF claims to have learned the lessons of this episode and the failure of his first loan to Greece.

His chief of mission in the European nation, Poul Thomsen, said in February that the IMF would ask for further measures to liberalize the economy and less to reduce the fiscal deficit.

“We suggest to go a little faster on budget rebalance and move faster, much faster, on the reforms needed to modernize the economy. I think we will see in the new program,” he told the Greek daily Katherimini.

The financial sector remains skeptical and interprets the amount of new credit as a sign that the IMF and the international community in Europe will do more for its Greek partner.

“Although it is not surprising, is nevertheless a new illustration of the IMF and the international community, particularly the G20, obtained satisfaction of his desire to see the EU playing a greater role” in the rescue of Greece, wrote on We