31 Jul 2013
IMF expects 11 billion euro financing gap in Greek bailout
The International Monetary Fund has revealed today that, despite the recent optimistic conclusion of the Greek aid program review by the European Commission and the ECB, the country indeed faces a considerable funding shortfall in 2014 and 2015.
Eurozone countries urged to provide more debt relief
According to the IMF's quarterly assessment of the Greek bailout, the financing gap will probably amount to 11 billion euros (4.4 billion euros next year and 6.5 billion euros in 2015), if not more. The country needs a 4% of GDP debt relief, in order to withstand any future economic shocks. This means considerable losses for the Eurozone Member Sates.
The IMF mission chief to Greece Poul Thomsen pointed out today that the economic outlook for the country is subject to large downside risks and that “the assumption of a gradual recovery is based on the assumption that we have a rebound in consumption and investment and sustained implementation of policies and broad political support of the program."
South American IMF member countries refuse to participate in Greek bailout
Furthermore, this week eleven central and South American International Monetary Fund member countries expressed their opposition towards the organization's participation in further Greek bailouts. They have refused to back the IMF's latest 1.8 billion euro contribution to the rescue, saying that Greece probably won't be able to repay the loans.
Eurozone countries urged to provide more debt relief
According to the IMF's quarterly assessment of the Greek bailout, the financing gap will probably amount to 11 billion euros (4.4 billion euros next year and 6.5 billion euros in 2015), if not more. The country needs a 4% of GDP debt relief, in order to withstand any future economic shocks. This means considerable losses for the Eurozone Member Sates.
The IMF mission chief to Greece Poul Thomsen pointed out today that the economic outlook for the country is subject to large downside risks and that “the assumption of a gradual recovery is based on the assumption that we have a rebound in consumption and investment and sustained implementation of policies and broad political support of the program."
South American IMF member countries refuse to participate in Greek bailout
Furthermore, this week eleven central and South American International Monetary Fund member countries expressed their opposition towards the organization's participation in further Greek bailouts. They have refused to back the IMF's latest 1.8 billion euro contribution to the rescue, saying that Greece probably won't be able to repay the loans.