The International Monetary Fund (IMF) is ready to allocate 28 billion euro (about $36.7 billion) to support Greece’s economic program over the next four years.
“Today I have consulted with the IMF’s Executive Board and on that basis, as discussed with the Greek government, I intend to recommend a 28 billion euro (about $36.7 billion) arrangement under the Fund’s Extended Fund Facility (EFF) to support Greece’s ambitious economic program over the next four years,” IMF chief Christine Lagarde said.
Greece’s private investors agreed on Friday to swap their government bonds for new securities that are worth 83.5 percent of the country’s sovereign debt in a deal that help the country stay afloat and avoid default on its massive debt, Greek Finance Ministry said.
The deal has cleared the way for the 130-billion-euro rescue package from the European Union and the International Monetary Fund.
“I welcome the cooperation of the private sector in participating in the debt exchange offer by the Greek authorities,” Lagarde said. “This is an important step that will dramatically reduce Greece’s medium-term financing needs and contribute to debt sustainability.”
