Last Updated: Fri Mar 09, 2012 22:03 pm (KSA) 19:03 pm (GMT)

IMF says Greek debt deal ‘important step’

International Monetary Fund chief Christine Lagarde did not mention whether the huge debt write-off will lead to IMF participation in the European Union’s plan to give Greece another 130 billion euros. (Reuters)
International Monetary Fund chief Christine Lagarde did not mention whether the huge debt write-off will lead to IMF participation in the European Union’s plan to give Greece another 130 billion euros. (Reuters)

International Monetary Fund chief Christine Lagarde called the Greek debt deal Friday an important step but was mum on whether the IMF would now open up its coffers with more money for Athens.

“We welcome the cooperation of the private sector in participating in the debt exchange offer by the Greek authorities,” Lagarde said in a statement.

“This is an important step that will dramatically reduce Greece’s medium-term financing needs and contribute to debt sustainability.”

“This support by the private sector is a key component of the contribution by all parties to put Greece’s economy on a path of growth and financial stability.”

But Lagarde did not mention whether the huge debt write-off will lead to IMF participation in the European Union’s plan to give Greece another 130 billion euros ($170.7 billion) in financing to help it restructure its finances and economy.

The IMF has been coy about whether it will participate, though on Thursday a spokesman said the IMF executive board would likely discuss the issue next Thursday.

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