Greek crisis recovery effort applied as intended: EU, IMF

ATHENS (AFP) - A Greek recovery drive to overcome a financial crisis is being applied as intended, experts from the European Union and the International Monetary Fund said on Thursday. Joined by auditors from the European Central Bank, the EU-IMF team said in a statement it had found that the program is on track and that policies are being implemented as agreed. The program is aimed at helping Greece control its budget and reduce a huge debt and public deficit. The EU-IMF mission said fiscal developments are positive, with central govt revenues coming in closely as expected and with firm expenditure control in the state budget. It pointed to a pension reform measure introduced by the Socialist govt, which it said had made progress, with agreement reached on several key components. Structural reforms were also making progress, notably in the areas of local administration, privatisation, the labour market and tax administration. EU, IMF and ECB experts are to return to Athens in late July to draft an official report on Greek efforts to implement austerity measures adopted in May. The measures were applied in exchange for the release of a first installment of loans from a three-year 110-billion-euro (136-billion-dollar) EU-IMF bailout package. The report will determine the release of a second loan installment. The head of the IMF expert mission, Poul Thomsen, told reporters he was somewhat more optimistic about Greek (economic) growth, although it was too soon to review the figures, which foresee a 4.0 percent contraction this year.

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