Wednesday, July 13, 2011

IMF: Greece needs new bailout package

Greek Finance Minister Evangelos Venizelos

Thu Jul 14, 2011 1:12AM

The International Monetary Fund (IMF) has stated, in a recently released report, that Greece needs an additional bailout package to weather its debt crisis.

The report released on Wednesday, praised Greek officials for adopting austerity measures in an attempt to cut its budget deficit to less than 3 percent of its economy by 2014.

But added that the country needs to move decisively to bring its public debt under control, AP reported.

"It is essential that the authorities implement their fiscal and privatization agenda in a timely and determined manner," the report said.

Moreover, the report acknowledged that an additional EUR 71 billion in European Union aid and EUR 33 billion from private creditors is needed.

Greek Finance Minister Evangelos Venizelos said on Tuesday that his country wants the European Union to provide a new bailout package by the end of August, so they will be able to meet its financing needs in the coming year.

Greece's economy is currently contracting, making a reduction of the budget deficit harder, despite austerity measures.

"The recession is expected to trend a little deeper and longer than expected, but the outlook is for continued competitiveness gains and slightly faster external adjustment," the report stated.

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