Friday, May 27, 2011

Greece Insolvency: I.M.F. Rules Prevent It From Further Loan To Greece

More troubles in Europe this morning. Luxembourg's Prime Minister and Eurogroup president Jean-Claude Juncker said yesterday that the I.M.F. rules prevent it from providing further loans to gGreece because the country cannot guarantee its solvency for the next 12 months.
Mr Juncker said Greece's privatisation plan needs to be more ambitious.

A 12B euro payment is due to be made to Greece on 29 June, of which 3.3B euros should come from the IMF.

This is fifth tranche of the 110B euro loan package from the EU and IMF.

Juncker added that the IMF was assuming that if it decided not to make the payment the EU would step in and make it instead, but countries such as Germany, Finland and the Netherlands may oppose that.

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