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Germany says EU and IMF will back Greece bail-out
Date 03/06/2011 13:04  Author webmaster  Hits 1256  Language Global
3 JUN 2011

German ministers were forced to reassure the market that the European Union and the International Monetary Fund would stick together to bail-out Greece, amid renewed speculation that the €110bn (£96.7bn) rescue mission is close to collapse.

By Louise Armitstead | The Telegraph

Martin Kotthous, from the German finance ministry, emphasised that the bail-out was a "joint programme" between the EU and IMF.

He told reporters: "It was designed jointly. It will be evaluated jointly, and I also assume that it can only be continued jointly, including when it comes to the question of payouts of future tranches."

Greece is due to receive a €12bn injection from Europe and the IMF on June 29 as part of the international bail–out programme. Delivery of the cash is subject to a progress report on asset sales and spending cuts by the international authorities.

Representatives of the "troika" - the EU, IMF and European Central Bank - are in Athens inspecting Greece's assets. Tension is mounting in the markets ahead of their decision - which is expected before the weekend. On Wednesday there were further reports that the IMF will not sanction the next tranche.

Last week European markets were rattled when Jean–Claude Juncker, who chairs the eurozone finance ministers, said Greece could be disqualified from claiming part of its next cash injection.

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