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IMF pledges ‘multi-year’ support for Greece

April 12, 2010

The International Monetary Fund Sunday greeted the $40-billion financial support package for Greece sealed in Europe, and reaffirmed its readiness to offer added support if need be.

“The IMF stands ready to join the effort, including through a multi-year stand-by arrangement, to the extent needed and requested by the Greek authorities,” IMF director Dominique Strauss-Kahn said.

Strauss-Kahn said the agreement among the euro area finance ministers, the European Commission and the European Central Bank marked “a very important step”.

He said an IMF team would meet in Brussels Monday with the Greek authorities, the European Commission and the bank.

Earlier Sunday, the 16 states which use the euro agreed to spread out a 30-billion-euro ($40-billion) safety net for Greece in a bid to keep Athens solvent and ease the pressure on their currency.

No specific amount from the IMF has been stated, but European officials indicated it could be half as much again as the eurozone commitment.

Greece’s finances and the euro have taken a battering on global markets in recent months as investors have priced in an ever-increasing risk that Greece might become the first euro state in history to default on its many debts.

The ministers agreed the precise details of the emergency loan they would offer Greece if it found that it could no longer afford to borrow on financial markets.

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