IMF OKs €30bn loan for Greece

2010-05-09 22:18

Washington - The International Monetary Fund's executive board approved a €30bn loan on Sunday for Greece, whose debt woes have shaken global financial markets.

"The IMF executive board has concluded its discussion on Greece and approved a three-year stand-by arrangement for a total amount of SDR 26.4 billion (€30bn)," the fund said in a statement.

The action came at the end of a week that saw the euro plunge and financial markets reel amid uncertainty over whether Greece could implement deeply unpopular austerity measures and stave off bankruptcy.

The IMF loan is part of a larger €110bn package offered in conjunction with 15 eurozone nations in exchange for austerity measures that sparked violent street protests in Athens.

Greece hopes funds from the bailout loan will start flowing before its next maturing debt payment on May 19 so as to avoid a default.