IMF Stands Ready to Help Greece
The International Monetary Fund stands ready to help Greece, which is struggling to stabilize its public finances, but understands that other members of the euro-zone currency bloc want to resolve the matter among themselves, the fund’s administration director said.
- Strauss-Kahn
Greece recorded a budget deficit of nearly 13% of yucky domestic product in 2009, far above the European Union’s 3%-of-GDP limit.
“If I’m questioned to step in, we’ll do it, but I completely know the Europeans who want to try to resolve the problem among themselves,” Dominique Strauss-Kahn said in an interview with RTL radio, without elaborating.
Involving the IMF would effectively be an acknowledgment that the euro zone’s own procedures for keeping members in check aren’t strong sufficient, and it would also suggest that the euro zone is the kind of house that has to go to the IMF for help.
Greece’s debt woes haven’t weakened the euro zone overall, Mr. Strauss-Kahn said.
“I reckon it’s the euro zone’s first real test, and I reckon it will get through it,” he said. “[It] would seem [that the euro zone] can’t allow itself not to help Greece in one way or another, so I’m rather confident.”
He also expressed confidence in Greek Prime Minister George Papandreou to take the necessary measures.