IMF on standby to aid Greece over debt crisis
Saturday 30 January 2010
The International Monetary Fund (IMF) "stands ready" to help Greece with its debt crisis, a senior official said yesterday.
John Lipsky, the first deputy managing director of the IMF, said the fund is in "ongoing contact" with the Greek authorities following a "scoping mission" to assess the possibilities.
"The IMF stands ready to support Greece in any way we can," Mr Lipsky said. "It is a matter for the Greek authorities to decide, in collaboration with the European Union, but we are here to help if we are wanted."
The comments came against the background of Athens' borrowing costs hitting the highest levels since Greece joined the eurozone in 2001.
Greece's problems began in October, when the newly elected government discovered a deficit at 12.7 per cent of GDP, more than twice its predecessor's estimate. The country's creditworthiness was downgraded by all three major ratings agencies in December and last week the Prime Minister, George Papandreou, said the country faced an "unprecedented crisis".
Despite Athens plans to cut the deficit to below 3 per cent by the end of 2012, doubts are growing about the government's ability to get the spiralling debt under control. Next week, the European Commission will issue its own recommendations and set a deadline for dealing with the deficit, to be endorsed by EU finance ministers later in the month.
Earlier this week, investors showed unexpected appetite for Greek debt when the market responded with €25bn-worth of demand for its issue of €5bn-worth of five-year bonds, allowing the government to raise the issue to €8bn.
- 3 Russian girl takes her own life after parents find pornography on her computer
- 4 Ball pool for adults opens in London
- 5 Amal Clooney gives excellent response to fashion question at European Court of Human Rights
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
Kim Kardashian on Bruce Jenner's 'story': 'We support him no matter what, and I think when the time is right, he'll talk'
Michelle Obama highlights harsh restrictions faced by Saudi women after meeting King Salman without wearing a headscarf
Russian girl takes her own life after parents find pornography on her computer
Ball pool for adults opens in London
9 reasons Greece's experiment with the radical left is doomed to failure
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
Have we reached 'peak food'? Shortages loom as global production rates slow
Greece elections: Syriza and EU on collision course after election win for left-wing party
British Muslim school children suffering a backlash of abuse following Paris attacks
British grandmother Lindsay Sandiford faces execution by firing squad in Indonesia
iJobs Money & Business
£13000 per annum: Recruitment Genius: This Pension Specialist was established ...
£23000 - £26000 per annum + Benefits: Ashdown Group: Market Research Executive...
£25000 - £35000 per annum: Recruitment Genius: A Technical Report Writer is re...
Competitive salary & benefits!: MBDA UK Ltd: MBDA UK LTD Indirect Procurement...