By Maximilian Clarke
Christine Lagarde will recommend the International Monetary Fund (IMF) commit to a 6th loan support, or bailout package as soon as Greek Prime Minister Papandreou conducts his controversial referendum.
Doing so, assures the French economist and Managing Director of IMF, will help to calm the continued uncertainty and better prepare leaders to agree on a suitable plan for the country, and for the broader European Union. Speaking today from the second day of the G20 Summit, in Cannes, Lagarde Commented:
“I remain convinced that the agreement reached by the leaders of the Euro Area at their Summit last week, which includes a substantive reduction in Greece’s debt burden and additional financial support for a new ambitious program, will greatly benefit Greece by helping to restore growth and create jobs.
“I welcome the Prime Minister’s indication that the referendum which has been announced will take place as soon as possible so that the Euro Summit agreement can be implemented expeditiously.
“As soon as the referendum is completed, and all uncertainty removed, I will make a recommendation to the IMF Executive Board regarding the sixth tranche of our loan to support Greece’s economic program.”
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