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IMF approves 1.7 bn euro loan payout to Greece

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(Globalpost/GlobalPost)

The International Monetary Fund released 1.72 billion euros ($2.29 billion) in aid for Greece on Monday after completing a review of the country's performance under the international rescue program.

The latest disbursement means that Greece has received a total of roughly 8.24 billion euros ($10.94 billion) from the IMF under the bailout coordinated with the European Union and the European Central Bank in March 2012.

On Friday, the 18-nation eurozone gave the green light for the release of 4.0 billion euros in bailout funds for Greece after it had met program conditions.

Twice bailed-out Greece still faces a funding shortfall of some 3.8 billion euros late next year but its troika of international creditors are not overly concerned, a senior EU official said Friday, speaking on condition of anonymity.

"There is a program financing gap of about 3.8 billion to the end of 2014," the European Union source said, adding that in the eyes of the experts involved, this figure was "not enormous."

The Greek bailouts agreed by the EU, the European Central Bank and the International Monetary Fund are financed through mid-2014, the official said.

Greece was first bailed out for 110 billion euros in 2010 but when that failed, got a second rescue worth 130 billion euros plus a private sector debt write-off totaling more than 100 billion euros.

In exchange, Athens has had to implement draconian austerity measures, including drastic cuts to pensions and civil service payrolls while the economy has remained stuck in recession for some six years.

vs/jm

http://www.globalpost.com/dispatch/news/afp/130729/imf-approves-17-bn-euro-loan-payout-greece