Greece Receives More Bailout Money
International financial inspectors say they have reached agreement with Greece on reforms to put the nation's troubled economy back on track.
"Economic and financial policies" have been agreed between Greece and the troika of bodies which has been mulling if Athens will get any new loans. The EU, IMF and European Central Bank say Greece is now likely to get 8bn euros ($11bn; £7bn) more bailout cash. It came as they said Greece's fiscal target for 2011 was not achievable. "Once the Eurogroup and the IMF's executive board have approved the conclusions of the fifth review, the next tranche of 8bn euros will become available, most likely, in early November," a statement said. Some 5.8bn euros would come from the euro area member states, and another 2.2bn from the International Monetary Fund. "The success of the programme continues to depend on mobilising adequate financing from private sector involvement (PSI) and the official sector, " the troika statement continued.
"Ongoing discussions on PSI together with assurances provided by European leaders at their 21 July summit suggest that the programme remains fully financed," it said. The statement said that, "the fiscal target for 2011 is no longer within reach, partly because of a further drop in GDP, but also because of slippages in the implementation of some of the agreed measures". However, it added that that 2012's deficit target of 14.9bn euros should be met if there was a "determined implementation" of the government's austerity plan.
taken from the BBC