This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Greece Wins IMF Praise Despite Slow State Reform

By DEREK GATOPOULOS and MARJORIE OLSTER

ATHENS, Greece (AP) â¿¿ The International Monetary Fund said Greece had made "exceptional" progress in stabilizing its economy and remains on course to emerge from a near six-year recession in 2014, despite missing targets to ax state jobs and the threat of an 11 billion euro ($14.6 billion) gap in bailout financing.

In a 207-page report published Wednesday, the Washington D.C.-based institution also cautioned that Greece needs to make major structural reforms so its economy can grow in the long-term.

Greece's coalition government is struggling to meet staff reduction targets in the large public sector, and is due to announce details later Wednesday of its plan to suspend up to 25,000 employees on reduced pay by the end of the year. Though some will then be transferred, the government admitted that some won't find a new job and will be fired.

The IMF report follows the payment of the latest 2.5 billion euro installment of bailout loans to Greece from its European partners, in addition to which the fund contributed some 1.7 billion euros. However, one IMF Executive Board member from Brazil abstained from approving the IMF payment, claiming in a statement that "recent developments in Greece confirm some of our worst fears" and that "implementation has been unsatisfactory in almost all areas."

The country has been surviving on rescue loans from the IMF and other eurozone countries since 2010, when it lost access to long-term debt markets. Austerity measures demanded in return for the 240 billion euro ($319 billion) bailout program have hammered the economy and seen unemployment surge to 27 percent. Greece's annual economic output is around a fifth smaller than when it entered recession in 2008.

"The fiscal adjustment remains exceptional by any international standard," the IMF said.

The IMF described the country's privatization program as being "painfully slow" and expressed concern that mass staff transfers and firings planned in the public sector may not have the desired effect.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 16,351.38 +293.03 1.82%
S&P 500 1,948.86 +35.01 1.83%
NASDAQ 4,749.9790 +113.8740 2.46%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs