Il International Monetary Fundand he agreed to Greece a payment of 2,2 billion euros, a loan that should give the European Union time to prepare the necessary measures to avert the spread of the debt crisis.
“Greece has already taken significant fiscal measures, including substantial deficit reduction. Yet, with structural reforms proceeding sluggishly, the domestic economy continuing to remain weak and the external environment worsening, the fiscal consolidation program is in a difficult phase,” he explained in a note. Christine Lagarde, managing director of the IMF.
The loan tranche was initially blocked after the Greek government had shown some difficulties in implementing the promised measures. But after the assurance by the new prime minister Lucas Papademos that Greece will honor the terms of the first agreement, the EU had given the go-ahead for the first 8 billion euros.
However, Lagarde underlined again, "the new government must carry on with the reform programme, this is the best way for Greece to manage the risks it is facing", the IMF director then added that "the measures will have to be supported by the prompt implementation of basic tax reforms, necessary to reduce the public sector and to strengthen the collection of contributions" and went on to highlight the need for an "extensive program of privatizations and structural reforms capable of boosting the competitiveness of some key sectors of the Greek economy”.
