The IMF will release crucial loans to save Greece from default despite a likely delay by the European Union in agreeing a second bailout for the heavily indebted state, euro zone sources said on Thursday.
The news came as Greek prime minister George Papandreou, beset by mass street protests and resignations from his ruling socialist party, was planning to reshuffle his cabinet and drive through a draconian austerity plan to meet EU/IMF terms.
With financial markets unnerved by a deteriorating political situation in Greece and lack of agreement in the euro area on a new rescue plan, the EU's top economic official said he expected Athens will get the desperately needed next aid tranche in July.
'I am confident that next Sunday, the Eurogroup will be able to decide on the disbursement of the fifth tranche of loans for Greece in early July. And I trust that we will be able to conclude the pending review in agreement with the IMF,' Economic and Monetary Affairs commissioner Olli Rehn said in a statement issued to try to calm markets.
source:NewAge
