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Greece set to repay early part of IMF loans

Christian Fernsby |
Greece is set to press ahead with an early repayment of some 3.8 billion euros in IMF loans, out of 9.4 billion euros in total, as Finance Ministers Euclid Tsakalotos received the positive nod from the Fund’s managing director Christine Lagarde during their meeting over the weekend in Washington.

Lagarde has reportedly said that Greece’s request is “fair” as other program countries such as Portugal and Ireland had done the same in the past.

The early repayment will be subject to the approval of the European Stability Fund and the Eurogroup, while it some European parliaments will also need to approve the move.

Separately, the IMF reiterated its view that the pre-legislated measure of the reduction of the tax-free personal income threshold has to be implemented as of 2020.

The head of the IMF’s European department Poul Thomsen has reportedly stated that the reduction will allow Greece to increase investments and social expenditures.

Also, Thomsen acknowledged that the country’s fiscal adjustment has been “exceptionally good”, but still some policies are not growth friendly.

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