Greece needs to ease up on the effort to reduce the budget deficit but hasten the implementation of reforms, head of the International Monetary Fund's supervisory mission in Greece Poul Thomsen said on Wednesday.
"We have argued to go a little slower as far as fiscal consolidation is concerned and move faster — much faster — with the reforms needed to modernize the economy. I think that you will see this reflected in the new program," Thomsen told Greece's Kathimerini newspaper.
Greece has been receiving financial support from the EU and the International Monetary Fund from May 2010 aimed at reforms and reduce country's large budget deficit but the Greek government has missed its targets. The government austerity measures have sparked numerous riots and strikes.
Thomsen also said that Greece and its creditors had almost reached agreement on a 130-billion euro ($158 billion) EU-IMF bailout to avert default. The IMF also wants confirmations from all political forces in Greece to ensure that the ruling party after early parliamentary elections in April 2012 will continue the reforms.
"We believe that the (Greek) government should consider more direct interventions for a temporary period, until reforms become effective. These could include limitations on the minimum wage and possibly the 13th and 14th salaries," he also told the paper.
