IMF money for Greece depends on boosting euro bailout funds

Feb 22, 2012, 6:02 GMT

Brussels - The eurozone should boost its bailout funds if it wants the International Monetary Fund (IMF) to make a 'significant' contribution to a second bailout package for Greece, the head of the Washington-based body said early Tuesday.

Christine Lagarde was asked to comment on reports that the IMF would contribute less than one-third of the 130-billion-euro (172-billion-dollar) bailout bill - the share of the euroarea rescue packages it has covered in the past two years.

She said eurozone ministers wanted 'a significant contribution' but IMF decisions on the matter, expected in March, depended on Greece delivering reform pledges as well as on 'additional matters, such as the proper setting-up of a decent [eurozone] firewall.'

Creating bigger bailout funds 'was considered today but not concluded today,' Lagarde lamented.

Eurogroup President Jean-Claude Juncker said he was confident eurozone leaders would approve the decision at a March 1-2 summit.

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