The International Monetary Fund (IMF) on Friday joined the European Union in efforts to assist Greece in curbing its burgeoning budget deficit and combating the debt crisis.
Such statements from the IMF came just a day after the EU leaders’ summit, which sent a message of solidarity to Athens but did not result in a concrete rescue plan, disappointing the markets and putting pressure on the value of the euro and Greek bonds."We are ready and able to help Greece in a manner that the Greek authorities deem acceptable," said IMF First Deputy Managing Director John Lipsky in remarks to reporters on the sidelines of an international central bankers’ conference. An unnamed EU source told Reuters that the Union expressed interest in the IMF’s expertise in designing financial assistance, but not in its funds.
European Central Bank (ECB) President Jean-Claude Trichet offered the bank’s assistance in monitoring the implementation of Greek measures to address budgetary issues as well as in designing necessary additional measures."I confirm that the ECB will cooperate with the European Commission in monitoring and implementing the recommended Greek measures," Trichet’s statement said. EU President Herman Van Rompuy and German Chancellor Angela Merkel stated that it is not possible to offer a detailed assistance plan for Greece since it has not requested help from the EU. This disappointed financial markets that had hoped EU heads of state and government would present concrete plans to enable Greece to secure life-saving loans or at least propose a scheme under which state banks in the EU would purchase Greek bonds, thereby assisting the Greek government in financing its borrowing. (H)
