IMF: No risk for financial gap until August 2014

The Fund’s spokesman urged Greece to accelerate reforms

There is no risk of a financing gap in Greece until August 2014, IMF spokesman Gerry Rice said today, adding that the Eurozone will keep supporting Greece after July 2014.

During a press conference, Rice confirmed that the Fund will meet in July for the tranche of 1.8 billion that is expected to be disbursed in mid-August, and urged Greece to accelerate the agreed reforms. He estimated that the prospects for the Greek economy remain uncertain, for reasons both internal and external.

He was also asked whether the Fund approved the reduction of VAT in catering by 10%. Among other things he said that the agreement between Troika and the Greek government does not include a temporary reduction in catering VAT. This issue, however, continues to preoccupy the discussions of the lenders with the Greek authorities.

Asked why the Troika requires more measures, he argued that there is no question of additional measures in 2013 but Greece must implement what has already been agreed.

Regarding the criticism on the role and mission of the IMF in the loan programs to European countries, particularly in Greece and Portugal, and that "the IMF is accused for helping the EU to conceal its problems," Rice refuted the accusations by saying that the IMF operates transparently and in full cooperation with its partners.

Finally, regarding Cyprus, he said that Christine Lagarde replied to president Anastasiadis, welcomed his will to continue the path of sustainable development and assured him of the support from the IMF’s side.