‘Greece needs refinancing to keep euro’

“In the absence of continued official support and access to ECB refinancing operations, a disorderly euro exit would be unavoidable, heightening risks to the Fund,” the IMF report issued on Friday said.

The report added that the rest of Europe, and possibly the world, would also be affected by the economic costs and contagion risks of Greece’s possible exit from the eurozone.

On Thursday, the IMF approved a loan to Greece worth about 28 billion euros (36.7 billion dollars). IMF Managing Director Christine Lagarde announced the loan plan on March 9.

Lagarde said in a statement issued on March 9 that the loan plan was arranged to support Greece’s “ambitious economic program over the next four years.”

Eurozone finance ministers have approved two bailout packages for Greece over the past two years.

The first bailout, worth 110 billion euros (147 billion dollars), was approved on May 2, 2010, and the second package was approved on February 21, 2012 and is worth more than 130 billion euros (174 billion dollars).

HSN/MF/HGL

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