According to the IMF, the institution’s assistance (note how the words “IMF”, “Greece” and “assistance” appear in the same sentence) will consist at helping the country tame its massive debt and a runaway public deficit (Elada has rejected speculation that it would need a bailout to tackle the deficit) of 12.7%, which have shaken the euro and put pressure on Greek sovereign bonds.
Dow Jones: “Olli Rehn, the European commissioner for economic affairs, said earlier in the week that European and IMF officials would visit Athens in coming days to examine Greece’s budget measures.
The E.U., which has dismissed the possibility of IMF financing, is demanding that Greece cut its budget gap before it considers providing aid.
When asked about the possibility of contagion to other parts of the euro zone, such as Spain and Portugal, Hawley said those countries are in a different position.
“We do see differences between their circumstances and those of other parts of the euro area,” said Hawley, citing their strong fiscal starting positions and the solid track record and credibility of their institutions and statistics.”