Wednesday, December 8, 2010

IMF Chief Backs Greek Loans Extension

Associated Press/New York Times
December 7, 2010

The head of the International Monetary Fund said Tuesday the organization supports a plan to extend Greece's repayment of bailout loans, and he urged the European Union to seek a "comprehensive solution" to the continent's government debt crisis.

Greece is currently negotiating terms of repayment for the three-year, euro110 billion ($150 billion) bailout loan that saved the debt-ridden country from default in May. The loan package ends in 2013, but analysts and officials have been concerned over Greece's ability to cope with the large debt repayments it would face afterward, in 2014 and 2015.

"We saw there was a problem of the length of the period of repayment, and I'm advocating the fact that we should lengthen this period," IMF chief Dominique Strauss-Kahn said during a one-day visit to Athens.

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