The International Monetary Fund
will send a team to Greece Monday to begin laying the groundwork for a rescue, should the debt-stricken nation make the request for help.
In a statement issued in Washington Thursday, IMF Managing Director Dominique Strauss-Kahn said Greece asked him to send a team “to begin discussions with the Greek authorities this coming Monday on policies that could provide the basis for fund financialassistance , under a multi-year program, in the case that the authorities decide to ask for such assistance.”
The Greek request comes amid signs that investors are losing faith in the mutibillion-euro backstop that European governments arranged for Greece last weekend.
After a respite following the announcement that European governments were prepared to put up €30-billion in the first year of a rescue, markets turned against Greece because of uncertainty about how quickly it could access the money if needed. The euro fell Thursday and the gap between Greek 10-year debt and the German equivalent widened to a near record.
The IMF is a partner in the European rescue plan, with reports saying the Fund could contribute €15-billion, as well as provide much of the technical assistance.
Mr. Strauss-Kahn said the request from Athens to begin discussions with the IMF is “consistent” with the European program.
In a statement issued in Washington Thursday, IMF Managing Director Dominique Strauss-Kahn said Greece asked him to send a team “to begin discussions with the Greek authorities this coming Monday on policies that could provide the basis for fund financial
The Greek request comes amid signs that investors are losing faith in the mutibillion-euro backstop that European governments arranged for Greece last weekend.
After a respite following the announcement that European governments were prepared to put up €30-billion in the first year of a rescue, markets turned against Greece because of uncertainty about how quickly it could access the money if needed. The euro fell Thursday and the gap between Greek 10-year debt and the German equivalent widened to a near record.
The IMF is a partner in the European rescue plan, with reports saying the Fund could contribute €15-billion, as well as provide much of the technical assistance.
Mr. Strauss-Kahn said the request from Athens to begin discussions with the IMF is “consistent” with the European program.
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