IMF approves $2.3-b aid for Greece

The International Monetary Fund has released $2.29 billion in aid for Greece after completing a review of the country’s performance under the international rescue programme.

The latest disbursement means that Greece has received about $10.94 billion from the IMF under the bailout coordinated with the European Union and the European Central Bank in March 2012.

On Friday, the 18-nation Euro Zone gave the green light for the release of €4.0 billion in bailout funds for Greece after it had met the programme conditions.

Twice bailed-out Greece still faces a funding shortfall of some €3.8 billion late next year but its troika of international creditors are not overly concerned, a senior EU official said on Friday, speaking on condition of anonymity.

“There is a programme financing gap of about €3.8 billion to the end of 2014,” the European Union source said, adding that in the eyes of the experts involved, this figure was “not enormous’’.

The Greek bailouts agreed by the EU, the European Central Bank and the International Monetary Fund are financed through mid-2014, the official said.

Greece was first bailed out for €110 billion in 2010 but when that failed, got a second rescue worth €130 billion plus a private sector debt write-off totalling more than €100 billion.

In exchange, Athens has had to implement draconian austerity measures, including drastic cuts to pensions and civil service payrolls, while the economy has remained stuck in recession for some six years.