IMF approves €1.7bn bailout to Greece

The International Monetary Fund (IMF) has approved a 1.7-billion euro (USD 2.3-billion) bailout loan for Greece after completing an economic review of the cash-strapped Mediterranean country.

The IMF issued a statement on Monday saying the new tranche of loan is part of a 173-billion euro (USD 230-billion) program to help Greeceâ„¢s economic adjustment program.

The payout brings the total disbursement from the global lender to 8.26-billion euros (USD 10.94-billion) for Greece.

The fourth review of Greece’s performance revealed that the country needs greater reform efforts to help economic recovery and lasting growth.

Å“Broader structural reforms must be accelerated to boost productivity and growth. And urgent steps need to be taken to address concerns about the structure and governance of the privatization program and to improve its effectiveness,” said IMF Managing Director Christine Lagarde.

The Washington-based institution noted that the loans were granted on the condition that the country imposes spending cuts and other austerity measures.

The country has been surviving on bailout loans from its international creditors since May 2010.

Athens was granted a 110-billion-euro (USD 145-billion) bailout by the so-called troika of international lenders — the European Union (EU), the European Central Bank (ECB), and the International Monetary Fund (IMF) in May 2010.

Another 130-billion euro (USD 170-billion) rescue package was approved in February 2012.

Greece has been in a recession since late 2008. The country has been cutting down its spending over the past four years, which has resulted in many Greeks losing their jobs.

The record high unemployment level in Greece stands at 27 percent and 62.5 percent of the youths are without work.

GMA/PR

Republished from: Press TV