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IMF approves ,e1/43.2 billion loan for Greece.

In announcing the payment, IMF managing director Christine Lagarde said Greece has made "some progress" to get back on a sustainable fiscal path, but added it has much more work to do.

The fund stressed that the government had to press ahead with reforms required under the IMF-EU program. It added that Europe's richer countries needed to keep up their backing for Athens.

"Greece's debt sustainability hinges critically on timely and vigorous implementation of the adjustment program, with no margin for slippage, and continued support from European partners and private sector involvement," new IMF chief Christine Lagarde said in a statement.

Lagarde added, "However, with many important structural reforms still to be implemented, significant policy challenges remain. A durable fiscal adjustment is needed, lest the deficit get entrenched at an unsustainably high level, and productivity-enhancing reforms should be accelerated, lest growth fail to recover."

The IMF has warned the crisis in Greece could hit countries like the United States through money market funds, especially if the contagion spreads to European banks heavily exposed to Greek debt.

The global lender scheduled its meeting to consider the fifth loan disbursement for Greece after eurozone leaders agreed on Saturday to release their portion of the 12 billion due to be paid to Athens from the initial bailout.

The tranche, approved on Friday, brings IMF disbursements so far to Greece totalling about 17.4 billion.

2011 CPI Financial. All rights reserved.

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Publication:CPI Financial
Geographic Code:4EUGR
Date:Jul 10, 2011
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