IMF releases more funds for Greece

WASHINGTON (BestGrowthStock) – The International Monetary Fund said on Friday that Greece was ahead of schedule in making needed economic reforms and said it was disbursing an additional 2.57 billion euros to it under a standby loan.

“All quantitative performance criteria for end June were met and major structural reforms are ahead of schedule,” the IMF said in announcing the new disbursement under a three-year, 30-billion-euro ($40 billion) rescue loan agreed in May for the debt-stricken country.

The IMF said that, so far, some 8.28 billion euros out of its total 30-billion-euro loan have been given to Greece. The IMF loan was part of a broader package put together with euro area member countries that came to 110 billion euros in all.

The IMF said that Greece will have to keep implementing its austerity program rigorously and do all it can to build public support for its actions. There have been strikes and protests by Greek citizens against the austerity moves.

“The fiscal strategy is on track,” the IMF said. “Continued tight expenditure control and monitoring will be key, in particular at sub-national levels. The authorities are determined to strengthen tax administration and reduce tax evasion to secure revenues.”

Greece had to commit to painful spending cuts and to steps aimed at curbing tax cheating and boosting revenues as a condition of getting the IMF/EU aid, which was granted amid swelling concern that Greece’s crisis was so severe that it risked triggering a global one.

The IMF described Greek bank liquidity as “tight but manageable” and said continued close monitoring of its financial sector will be necessary.

(Reporting by Glenn Somerville and Tim Ahmann)

IMF releases more funds for Greece