The International Monetary Fund (IMF) has assessed the Greek austerity plan as significant but has called for more far-reaching reforms that would help the Mediterranean country avoid further debt problems in the future.
"The Greek authorities have devised a very strong package of fiscal measures for 2010," said IMF spokesperson Caroline Atkinson. "The implementation of the fiscal program will be a crucial step forward in the long-term perspective." Atkinson further emphasized that the IMF is ready to advise Greece on reducing spending and improving the state of public finances. The spokesperson did not mention a potential emergency IMF loan, suggesting instead that if the IMF were to be engaged, it would seek more far-reaching reforms in the economy.
"We also encourage the authorities to develop and soon implement significant reforms aimed at supporting productivity and growth, thereby complementing the fiscal consolidation currently underway," she said. "We are ready to support the plans of the Greek government in terms of providing technical expertise on these issues," Atkinson stated. Greece hopes for some assistance from the European Union after announcing a new package of measures aimed at saving an additional €4.8 billion in an effort to prevent bankruptcy. Greek Prime Minister George Papandreou has not ruled out the possibility of seeking IMF assistance to exit the debt crisis if the EU fails to act. (H)
