EU, IMF press Greece on reforms before aid flows

Page last updated at 04:33 GMT, Friday, January 27, 2012 - 09:33 EST

Reuters:

The European Union and IMF want Greece to push through more budget cuts and implement a series of long-agreed austerity reforms before they agree on a new bailout the country needs to avert bankruptcy, a report obtained by Reuters shows.

All eyes have been on Athens' tortuous debt swap talks with its private creditors in recent weeks. EU economic and monetary affairs chief Olli Rehn injected some optimism on Friday, saying an agreement was "very close" and might be clinched as soon as this weekend.

With or without a deal with private creditors, Greece must convince its euro zone partners and the International Monetary Fund that it is doing enough to implement reforms they require in return for a 130 billion euro bailout package it needs to avert a chaotic default.

To do so, Greece will have to make extra spending cuts worth 1 percent of GDP - or just above 2 billion euros - this year, according to a preliminary estimate drawn up by the EU and the IMF in the document outlining the reforms Athens should enact.

Read the whole story: Reuters