— Correcting Figure In 2nd Paragraph To E15 Billion
PARIS (MNI) – The International Monetary Fund is considering
providing an additional E10 billion in aid to Greece, as fears mount
that the envisioned E45 billion EMU-IMF aid package won’t be enough to
stop the run on Greek debt, the Financial Times reported online late
Tuesday night.
Under the currently envisioned plan, the Eurozone nations would
provide bilateral loans to Greece totaling E30 billion in the first year
of a 3-year plan. The IMF would contribute E15 billion, bringing the
total value of the assistance package to E45 billion.
But now the IMF is “in talks to increase its aid contribution by
E10 billion,” the newspaper said, citing senior bankers and officials in
Washington and in Athens.
“The Fund’s current ceiling for Greece is E25 billion, and the
release of the extra amount is under discussion,” according to an
analyst familiar with the talks, cited by the FT.
The newspaper said the total size of the Greece package over the
full three years is now expected to be “at least” E70 billion.
Greece’s sovereign debt Tuesday was downgraded three notches by
Standard & Poor and now has “junk bond” status. S&P also downgraded
Portugal’s debt by two notches, stoking fears that contagion from the
Greek crisis was indeed now materializing.
–Paris newsroom, +331-42-71-55-40; bwolfson@marketnews.com
[TOPICS: M$$EC$,M$X$$$,MT$$$$,MGX$$$,M$$CR$]
