Greece risks ‘manageable’ if EU acts in time
AFP, Washington :
The eurozone can manage the risks linked to Greece’s debt crisis if it acts in time, the International Monetary Fund said Thursday in a statement on the currency bloc.
“Provided there is a timely and effective policy response, the near-term risks from uncertainty surrounding Greece appear manageable,” IMF staff said after annual consultations with eurozone authorities.
For several weeks debt-riddled Greece has failed to reach an agreement with the IMF and the European Union on the reforms needed to unblock the last installment of its bailout program, which expires on June 30, raising concerns about a default that could result in severe negative consequences for the eurozone.
According to the IMF staff, the risks of contagion from the Greek crisis have been “much reduced” by policy measures taken by the authorities, including the European Central Bank’s launch in March of a massive bond-purchase program, or quantitative easing, and European firewalls erected by Brussels.
The eurozone can manage the risks linked to Greece’s debt crisis if it acts in time, the International Monetary Fund said Thursday in a statement on the currency bloc.
“Provided there is a timely and effective policy response, the near-term risks from uncertainty surrounding Greece appear manageable,” IMF staff said after annual consultations with eurozone authorities.
For several weeks debt-riddled Greece has failed to reach an agreement with the IMF and the European Union on the reforms needed to unblock the last installment of its bailout program, which expires on June 30, raising concerns about a default that could result in severe negative consequences for the eurozone.
According to the IMF staff, the risks of contagion from the Greek crisis have been “much reduced” by policy measures taken by the authorities, including the European Central Bank’s launch in March of a massive bond-purchase program, or quantitative easing, and European firewalls erected by Brussels.