John Lipsky,First Deputy Managing Director of the International Monetary Fund,says the 110 billion Euro aid package to Greece will restore financial stability and set the stage for renewed growth in the Greek economy.The European Union authorities have agreed to create a stabilization mechanism in conjunction with an IMF program where help is asked for and needed.
There's no question that the Greek adjustment program is a difficult one,Mr.Lipsky admitted,but it was designed by the Greek government and approved by Parliament,and the majority of Greeks support it.A combination of high debt,high deficits and a lack of competitiveness had reached a big proportion in Greece.
The IMF constitutes a revolving fund from its 186 member countries.The U.S. pays about 17% of the fund.It is replenished whenever it is used.There are no program negotiations with Spain or Portugal at this time,John Lipsky stated.
The IMF is an autonomous UN agency which promotes international monetary cooperation,currency stabilization and international trade.
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