UPDATE 1-IMF board to meet Sunday to approve Greek aid

(Adds background)

WASHINGTON, May 4 (BestGrowthStock) – The International Monetary
Fund’s executive board will meet on Sunday to act on Greece’s
request for a $40 billion standby arrangement, a fund
spokesman said on Tuesday.

The European Union and IMF have agreed on a bailout plan
for the debt-strapped country, but the IMF’s board must still
approve its portion of it.

The IMF’s chief negotiator on Greece, Poul Thomsen, said
last Sunday that it was fast-tracking financial aid for Greece
and expected to release funds to it “very soon.”

The overall bailout package for Greece is huge, with about
30 billion euros to come from the IMF and 80 billion euros from
the European Union in return for Greece agreeing to spending
cutbacks and tax rises totaling 30 billion euros over the next
several years.

Financial markets, however, have continued to be leery of
Greek debt and remained fearful that other countries like
Portugal and Spain might need aid from the euro zone.

Spanish Prime Minister Jose Luiz Rodriguez Zapatero on
Tuesday dismissed as “complete madness” a market rumor that
Spain would ask for support. The IMF said it had received
queries about Spain, but said, “There is no truth to these

The IMF said it would issue a statement after Sunday’s
board meeting, expected to say that it will soon issue funds to
Greece, which faces a key deadline May 19 when it must roll
over a substantial portion of its debt.


(Reporting by Glenn Somerville, Editing by Leslie Adler)

UPDATE 1-IMF board to meet Sunday to approve Greek aid