IMF approves US$40 billion Greece rescue loan
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The International Monetary Fund Sunday approved Greece's request for a 30 billion euro (some 40 billion U.S. dollars) rescue loan to bail out the debt-ridden EU country.
"The IMF executive board has concluded its discussion on Greece and approved a three-year stand-by arrangement for a total amount of SDR 26.4 billion (30 billion euros)," the IMF said in a statement.
According to the Washington-based agency, the front-loaded program makes some 5.5 billion euros immediately available to Greece from the IMF as part of joint financing with the European Union, for a combined 20.0 billion euros in immediate financial support.
In 2010, total IMF financing will amount to about 10 billion euros and will be partnered with about 30.0 billion euros committed by the EU.
Eurozone leaders have agreed to activate the aid package for Greece, offering along with the IMF 110 billion euros to the debt- laden country in the next three years, with euro area members contributing for their part 80 billions euros.
The EU's executive European Commission said Greece will get the first funds before May 19, when it is due to repay 8.5 billion euros (about 10.8 billion dollars) of maturing debt.
The loan from IMF, amounting to more than 3,200 percent of Greece's quota, was approved under the Fund's fast-track Emergency Financing Mechanism procedures, said the IMF.
"The Greek government should be commended for committing to an historic course of action that will give this proud nation a chance of rising above its current troubles and securing a better future for the Greek people," said IMF Managing Director Dominique Strauss-Kahn in a statement.
"The road ahead will be difficult, but the government has designed a credible program that is economically well-balanced, socially well-balanced, with protection for the most vulnerable groups, and achievable," said the IMF chief.
"Implementation is now the key," Strauss-Kahn stressed. " Together with our partners in the European Union, we are providing an unprecedented level of support to help Greece in this effort and -- over time -- to help restore growth, jobs, and higher living standards."
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