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IMF Approves USD4.6 Bln Aid For Greece

June 1, 2014

BRUSSELS (Alliance News) - The International Monetary Fund approved USD4.64 billion bailout payment to Greece after the completion of fifth review.

Deputy Managing Director of IMF, Naoyuki Shinohara said the Greek authorities have made significant progress in consolidating the fiscal position and rebalancing the economy.

The disbursements were delayed for a year amid questions over whether Greece continue its structural reforms. The lender approved the authorities' request for rephasing three disbursements evenly over the remaining reviews in 2014.

The primary budget posted surplus ahead of schedule. However, the lender observed that several challenges remain to be overcome before stabilization is deemed complete and Greece is back on a sustainable, balanced growth path.

Public debt is projected to remain high well into the next decade, despite a targeted high primary surplus.

Shinohara said additional fiscal adjustment is necessary to ensure debt sustainability, through durable, high-quality measures, while strengthening the social safety net.

He urged Greece to continue to improve tax collection, combat evasion and strengthen expenditure control. The authorities are taking remedial actions to clear domestic arrears and expedite privatization.

Further measures are needed to remove regulatory barriers and to reform investment licensing, Shinohara said.

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Source: Alliance News

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