THE IMF HAS confirmed that it will release a further €3.2 billion of funds to Greece as part of the multi-billion euro IMF/EU bailout deal for the country.
Saying that Greece has made “some progress” in regard to economic reforms, the IMF said that it expected the country to return to positive economic growth in the first six months of next year, RTÉ reports.
New chief of the IMF Christine Lagarde said that Greece was showing reassuring signs: “The fiscal deficit is being reduced, the economy is rebalancing, and competitiveness is gradually improving,” she said.
However, Largarde warned that there was still some way to go, reports Bloomberg. “A durable fiscal adjustment is needed, lest the deficit get entrenched at an unsustainably high level, and productivity-enhancing reforms should be accelerated, lest growth fail to recover,” she said.
The move follows last week’s decision by EU ministers to sign off on a €8.7 billion package of loans, securing the country’s short-term future in the aftermath of a new batch of austerity cuts. However, finance ministers have deferred a final deal guaranteeing a second bailout for debt-ridden Greece so far.
EU ministers are not expected to sign off on the second Greek bailout during a meeting in Brussels on Monday, reports Reuters, meaning that Greece will have to defer hope of securing a second package until mid-September.
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