IMF head supports extension of loan repayment for Greece

The head of the International Monetary Fund (IMF) on Tuesday expressed support for a plan to extend the repayment period of EU-IMF loans for Greece.

“It is more of a technical issue,” IMF Managing Director Dominique Strauss-Kahn said here at a joint press conference with Greek Prime Minister George Papandreou.

Greece secured in May a three-year, multi-billion-euro aid package from the European Union and the IMF that saved the debt- ridden country from default.

Amid concerns that it would face difficulties in repaying the loans by 2016, as required by the original timetable, Greece is negotiating the terms of extending the repayment period to 2021.

“I am personally impressed by the efforts Greek people make to exit the crisis, and that stands for the whole international community. The government introduced bold measures and Greek electorate recognized the need of these policies,” noted the IMF chief.

Papandreou thanked the IMF chief for his support for the idea of extending the repayment period.

“The Greek people are undertaking a Herculean task,” said Papandreou, noting that in less than a year Greece has already reduced by five percent a significant budget deficit which reached 15.4 percent of GDP in late 2009.

“The year 2011 will be the year of structural reforms. The way ahead is difficult. A lot of things need to be done, but as long as we achieve our goals, our successes will be acknowledged,” said Papandreou.