IMF: Approves EUR28 Billion Loan For Greece
March 15 2012 - 12:38PM
Dow Jones News
The International Monetary Fund's executive board Thursday
approved a EUR28 billion ($36.49 billion) loan for debt-beleaguered
Greece despite fears by some members that political risks may
derail the program.
The decision allows for an immediate disbursal of the first
EUR1.65 billion tranche of the loan.
As a small share of joint program with the European Union, the
loan helps Athens stave off default and the euro zone to
temporarily prevent the debt contagion from spreading to other
ailing countries in the region.
Still, several board members have expressed reservations about
the ability of Greece to successfully carry out the four-year
program.
The IMF has repeatedly said the Greek program runs a very high
risk of derailment given the depth of economic restructuring
required for the joint IMF-European Union package. The IMF is
especially wary given Greece's track record of failing to meet many
of its fundamental program targets.
-By Ian Talley, Dow Jones Newswires; 202-862-9285;
ian.talley@dowjones.com