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IMF seeks Greek bail-out assurances

The International Monetary Fund is blocking a £10.6bn aid payment to Greece until it receives assurances from European officials on a new Greek bail-out package.

It was thought recent public commitments from the EU stating it would ensure Greece does not go bankrupt were enough to secure the funding, with the IMF due to release £2.9bn, according to the Financial Times.

But amid disagreement over the terms of a new package, the IMF has said it needs firmer commitments before it releases the funds. Both the IMF and European Union are also insisting Greece pass new austerity measures.

Greece must receive the aid before July 15 or it will default on its sovereign debt.

According to the report, IMF acting head John Lipsky says: “That needs to be done before we can move forward and we are hopeful the conditions can be met with alacrity.”

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  1. Julian Stevens 22nd June 2011 at 9:30 am

    Do other countries in the E-zone continue to lob billions of euros into what appears to many to be an all but bottomless pit or do they cut their losses to date, write off as unrepayable what’s already been contributed and brace themselves for the upheavals this will cause across much of the E-zone banking system? It seems to be a matter of choosing the lesser of two evils. Thank goodness (for us) that, to a large extent, it isn’t a mess in which UK plc is embroiled. This must surely constitute vindication for all us Euro-sceptics.

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