Friday, March 16, 2012

IMF approves $36.56 billion funding for Greece

The IMF Thursday approved $36.56 billion in new funding for Greece over the next 4 years.  Apparently the last Greek bailout/ bond haircut was enough to kick the can a full 7 days down the road?

ATHENS – The International Monetary Fund on Thursday approved $36.56 billion in funding for Greece over the next four years, while Standard and Poor’s warned that the country’s new bonds remained vulnerable to default despite this month’s massive debt writedown.

The IMF’s executive board granted the immediate release of $2.15 billion of these funds as part of the country’s second bailout, a statement said.
Greece will receive a total $226.2 billion in rescue loans from its eurozone partners and the IMF to keep it afloat until 2016, as dizzily high borrowing rates have blocked its ability to raise money on the international bond markets.
IMF Managing Director Christine Lagarde warned that risks to Greece’s austerity and reform program still “remain exceptionally high, and there is no room for slippages.’’ She said new pain lies ahead for Greeks, despite the tough measures implemented over the past two years.
“Full and timely implementation of the planned adjustment – alongside broad-based public support and support from Greece’s European partners – will be critical to success,’’ she said in a statement.
Read more: