International Monetary Fund to give less to Greece in second bailout
In a speech today in Berlin IMF Managing Director Christine Lagarde said the euro zone needed a bigger firewall to ensure countries like Italy and Spain aren’t forced into a financing crisis.
The International Monetary Fund is considering contributing just 13 billion euro to the latest Greek bailout package, a move that would leave euro zone governments to provide a greater percentage of rescue funding than it has in past efforts, the Wall Street Journal reported.
The IMF funds would equal 10 percent of the 130 billion euro second bailout package under consideration for Greece. The IMF funded 30 billion euro of the first Greek bailout, an amount equal to about 27 percent of its 110 billion euro price tag.
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"The IMF's smaller contribution reflects fears from the fund's membership that it is becoming over-exposed to the euro zone," officials told The Wall Street Journal. The IMF also contributed to bailouts for Ireland and Portugal.
The paper noted the IMF has not made a final decision. Euro zone officials and finance ministers are expected to continue discussing the package during meetings Monday. European officials are hopeful they'll be able to reach a decision on Greece's latest bailout at Monday's meeting, Reuters reported.
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