Go Finance Reporting - The International Monetary Fund (IMF) has finally issued a loan of 2.5 billion euros to Greece. These grants serve as a warning to the nation was hit by debt to be more economical in the future.
In the midst of this recession, the cost of borrowing and saving the budget even higher. The IMF said that slow growth will cripple the economy to minus three percent next year.
Quoted by AFP on Sunday (12/19/2010), economic growth is expected to rise slightly from 2.5 percent. As to avoid default, the IMF approved the disbursement amounting to approximately $ 3, 3 billion, bringing total IMF emergency loans to Greece amounted to 10.58 billion euros or equivalent to USD13, 98 billion.
The loan is part of the European Union and the IMF amounted to 110 billion euros which was approved in May and will save this country from the bankruptcy of the Gods. As a result of this loan, Athens has initiated a series of dramatic spending cuts.
After reviewing the Greek movement in cutting the deficit, the IMF began to reform the country into good order.
"The competent authorities of Greece should be commended for their implementation will be difficult and ambitious reforms in macroeconomic and structural policies," said senior IMF, Murilo Portugal.
He said, inflation fell to improve competitiveness. In addition, the overall fiscal adjustment so far has been impressive. As we all know, Greece has been rocked by strikes and demonstrations that have crippled transportation networks and occasionally turned violent.
The IMF also warned that Athens should accelerate structural reforms, including labor markets, trade, tourism and retail sectors. (GoFinance)
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