Greece: Could be ‘disqualfied’ from an IMF cash injection

27th May 2011

Jean-Claude Juncker was reported on The Telegraph website as saying the omission prevented the IMF from releasing funds to Greece under its own rules.

"The IMF can only be active when there is a refinancing guarantee for 12 months," he said.

He added he did not believe that the European Union, European Central Bank and the IMF would decide this condition had been met. He said: "I don't think that the troika will come to this result."

Doubts over Greece's financial aid package caused investors to flee to the safe haven of German bonds. The euro also gave away earlier gains, hitting a two-and-half month low against sterling.

Greece is due to receive a €12bn (£10.4bn) injection from Europe and the IMF on June 29 as part of the country's €110bn bail-out programme. Inspectors from the EU, ECB and IMF are carrying out an audit of Greece's finances ahead of the decision on whether to deliver the next instalment.

Foxenburg, from the Telegraph says: "It's becoming absurd. Countries like Ireland, Portugal and Greece are saying we don't want to be rescued. The EU is saying you'll be rescued like it or not. And now the IMF is saying if you're not careful you won't be rescued. Presumably the average Greek says great, don't rescue us. It's like a script from Monty Python."

Speculation is growing Greece could leave the Euro as a result of its funding crisis.

To receive our free weekly email sign up here.   

Leave a Reply

Your email address will not be published. Required fields are marked *