IMF disburses $ 5.7 b to Greece

Greece: The International Monetary Fund (IMF) has agreed to pay out 4.1 billion euro ($5.7 billion) to Greece in order to boost the country's economic recovery plan. The IMF Monday urged Greek authorities to consider tougher economic reforms to build a critical mass necessary to improve the country's economic recovery, Reuters reported.

First Deputy Managing Director John Lipsky said Greece has achieved an overall stabilization and needs greater attention on "underlying reforms" from now on. According to the IMF, the country has so far managed to meet its key objectives by reducing inflation, shrinking unit labor costs and making considerable budget changes.

However, Lipsky added that Greece still needs new regulations on collective bargaining, hiring and the pension system. "Implementation should begin during 2011 to address a projected budget gap. In parallel, the government should redouble efforts to combat tax evasion and control spending, especially at the local government level," Lipsky added.

The 4.1 billion euros creates a total of 14.6 billion euros, disbursed by the IMF to Greece as an EU-IMF economy rescue program. The EU and IMF approved a 110-billion-euro loan package for Greece last May.Presstv