SALLY

Greece making good progress on debt, risks remain: IMF
July 18, 2010 - 3:19AM

Greek authorities have made "considerable progress" towards putting public finances in order, but the cost of health and social security funds continue to present risks, the IMF said in a new report.

"State budget implementation is on track with good expenditure control," the organization said after a recent visit to the country, which was forced to seek loans from the European Union and International Monetary Fund amid spiraling debt.

"However, hospitals and social security funds present clear risks, as do financial pressures in public enterprises," the international lending institution said in the report published on its website.

Belt-tightening measures intended to tame Greece's deficit contributed to slower economic activity, as had been expected, but inflation was up more than forecast, while private consumption was found to be "surprisingly resilient."

Overall, the report said the austerity measures adopted in May, over howls of protests from many in Greece, were being implemented as intended.

The measures were applied in exchange for the release of a first installment of loans from a three-year 136-billion-dollar bailout package issued jointly by the EU and IMF.

EU and IMF officials are expected to visit Greece again between July 26 and August 6 to produce a first official review of the plan, a condition for the release of the next tranche of bailout money.







http://news.smh.com.au/breaking-news...718-10fja.html

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