IMF agress £2.6bn payout to Greece

The International Monetary Fund has approved just over €3bn (£2.6bn) to Greece in the latest instalment of a rescue package aimed at helping the country pull back from an impending debt default.

The move by the executive board had been expected after a decision last week by eurozone finance ministers to give Greece their portion of a €12bn (£10.6bn) loan payment that is part of a €110 (£97.7bn) package agreed last year.



Yesterday's IMF action, with new managing director Christine Lagarde in the chair, came as European banks, insurance companies and other financial institutions were trying to get the private sector involved in helping save Greece from default.



The 17 countries that use the euro will continue with the IMF to prop up Greece's struggling economy in the coming years with a second package of aid loans to be completed in September.



Ms Lagarde said the raft of reforms, spending cuts and tax increases the government had been carrying out as part of conditions to receive bailout funds "is delivering important results: the deficit is being reduced, the economy is rebalancing and competitiveness is gradually improving".



But she said Greece still faced significant challenges, including meeting a target of getting its burdensome debt down to 7.5 per cent of gross domestic product in 2011 and to less than 3 per cent by 2014.



Ms Lagarde said: "Greece's debt sustainability hinges critically on timely and vigorous implementation of the adjustment programme with no margin for slippage, and continued support from European partners and private sector involvement."



She said the government's privatisation strategy was a critical step towards boosting investment and reducing the debt burden.



The European Union and the IMF Fund had said they would refuse to pay out the next instalment unless Greek MPs approved a new five-year package of €28bn (£24.8bn) worth of spending cuts and tax increases and a €50bn (£44.4bn) privatisation plan before the end of June.



Greek MPs delivered what was asked of them, cheering up global financial markets, but provoking violent demonstrations in the streets of Athens.



Ms Lagarde, a former French finance minister, took over as head of the 187-member lending institution on Tuesday, replacing Dominique Strauss-Kahn, who resigned in May to fight accusations of sexually assaulting a New York City hotel maid.



Ms Lagarde is the first woman to head the organisation since it was founded after the Second World War.

Start your day with The Independent, sign up for daily news emails
ebooks
ebooksA special investigation by Andy McSmith
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs General

Ashdown Group: Technical Presales Consultant - London - £65,000 OTE.

£65000 per annum: Ashdown Group: Technical Presales Engineer - central London ...

Recruitment Genius: Physiotherapist / Sports Therapist

£20000 - £50000 per annum: Recruitment Genius: A Physiotherapist / Sports Ther...

Recruitment Genius: Sales Executive / Advisor

£8 - £9 per hour: Recruitment Genius: Sales Executives / Advisors are required...

Recruitment Genius: Warehouse Operative

£14000 - £15000 per annum: Recruitment Genius: An opportunity has arisen for a...

Day In a Page

Homeless Veterans campaign: Donations hit record-breaking £1m target after £300,000 gift from Lloyds Bank

Homeless Veterans campaign

Donations hit record-breaking £1m target after huge gift from Lloyds Bank
Flight MH370 a year on: Lost without a trace – but the search goes on

Lost without a trace

But, a year on, the search continues for Flight MH370
Germany's spymasters left red-faced after thieves break into brand new secret service HQ and steal taps

Germany's spy HQ springs a leak

Thieves break into new €1.5bn complex... to steal taps
International Women's Day 2015: Celebrating the whirlwind wit of Simone de Beauvoir

Whirlwind wit of Simone de Beauvoir

Simone de Beauvoir's seminal feminist polemic, 'The Second Sex', has been published in short-form for International Women's Day
Mark Zuckerberg’s hiring policy might suit him – but it wouldn’t work for me

Mark Zuckerberg’s hiring policy might suit him – but it wouldn’t work for me

Why would I want to employ someone I’d be happy to have as my boss, asks Simon Kelner
Confessions of a planespotter: With three Britons under arrest in the UAE, the perils have never been more apparent

Confessions of a planespotter

With three Britons under arrest in the UAE, the perils have never been more apparent. Sam Masters explains the appeal
Russia's gulag museum 'makes no mention' of Stalin's atrocities

Russia's gulag museum

Ministry of Culture-run site 'makes no mention' of Stalin's atrocities
The big fresh food con: Alarming truth behind the chocolate muffin that won't decay

The big fresh food con

Joanna Blythman reveals the alarming truth behind the chocolate muffin that won't decay
Virginia Ironside was my landlady: What is it like to live with an agony aunt on call 24/7?

Virginia Ironside was my landlady

Tim Willis reveals what it's like to live with an agony aunt on call 24/7
Paris Fashion Week 2015: The wit and wisdom of Manish Arora's exercise in high camp

Paris Fashion Week 2015

The wit and wisdom of Manish Arora's exercise in high camp
8 best workout DVDs

8 best workout DVDs

If your 'New Year new you' regime hasn’t lasted beyond February, why not try working out from home?
Paul Scholes column: I don't believe Jonny Evans was spitting at Papiss Cissé. It was a reflex. But what the Newcastle striker did next was horrible

Paul Scholes column

I don't believe Evans was spitting at Cissé. It was a reflex. But what the Newcastle striker did next was horrible
Miguel Layun interview: From the Azteca to Vicarage Road with a million followers

From the Azteca to Vicarage Road with a million followers

Miguel Layun is a star in Mexico where he was criticised for leaving to join Watford. But he says he sees the bigger picture
Frank Warren column: Amir Khan ready to meet winner of Floyd Mayweather v Manny Pacquiao

Khan ready to meet winner of Mayweather v Pacquiao

The Bolton fighter is unlikely to take on Kell Brook with two superstar opponents on the horizon, says Frank Warren
War with Isis: Iraq's government fights to win back Tikrit from militants - but then what?

Baghdad fights to win back Tikrit from Isis – but then what?

Patrick Cockburn reports from Kirkuk on a conflict which sectarianism has made intractable