IMF Board Approves SDR €30 Billion Loan For Greece

The IMF on Sunday approved a three-year special drawing rights €30 billion ($40 billion) loan for Greece to help pull the debt-laden nation out of its economic crisis.

The IMF loan, which is part of a cooperative package of financing with the European Union amounting to about $146 billion over three years, includes conditions requiring Athens, whose sovereign debt crisis has shaken global financial markets, to implement strict austerity measures such as tighten its fiscal belt and raise taxes.

The IMF said around €20 billion ($29 billion) in financial support would be immediately available to Greece from the EU/IMF package.

In a brief statement after a nearly three-hour meeting with the IMF board, the IMF Managing Director Dominique Strauss-Kahn acknowledged that Greece faces tough times ahead, but he called the reform program credible, socially well-balanced, and achievable.

IMF: “Today IMF demonstrated its commitment to doing what it can to help Greece and its people. The road ahead will be difficult, but the [Greek] government has designed a credible program…Implementation is now the key,” the Managing Director stated.

IMF officials have said they’re confident the measures are enough to bring Geeece, which entered the global recession with deep-rooted vulnerabilities and has a debt burden of more than 115% of GDP, back from the brink.

Total financing for the Mediterranean country this fiscal year from the IMF/EU fund would come to about $43 billion.

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1 Comment on IMF Board Approves SDR €30 Billion Loan For Greece

  1. Greece and Spain won’t pay back. This was a calculated Risk, and a Lesson for the Banking System. What is happening in Greece, is a very well orchestrated show, to get granted €110bn aid, to avert meltdown. A new deception compared with the old Trojan Horse. The only thing Germans can do is:
    REPOSSESS 170 Leopard 2AEX Battle Tanks from Greece, and 190 Leopard 2A6E Battle Tanks from Spain.
    U.S.A must REPOSSESS 170 F-16 Jet Fighters from Greece, … the rest is gone with the wind …forever …
    Greece must stop paying lucrative pensions with borrowed money, reform the free health care system, and cut down, 4 times the military budged.
    Greece’s problem is too much debt. Greece has a budget deficit of 12.7% of GDP – meaning that the country is spending 12.7% more than the value of one year’s economic output.
    Greece is no different to a serial credit card borrower who can’t pay back his loans. But just like a serial credit card borrower, as long as Greece keeps relying on borrowed money to fund itself, the problem won’t go away. It will just get worse.
    But don’t worry; the ECB, the Fed or both will print the money.
    And all of us will share the pain, with our hard-earned money.
    Bad is never good until worse happens.

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