Greece: One step closer to more bailout funds
By Aaron Smith @CNNMoney October 11, 2011: 9:19 AM ET
Greece has moved one step closer to receiving the next installment of its first round of bailout funds in early November.
NEW YORK (CNNMoney) -- International monitors in Greece completed a review of the nation's finances, and said the latest installment of the nation's €10 billion bailout could be disbursed in early November.
The European Commission, the European Central Bank and the International Monetary Fund -- known as the troika -- said they had completed their fifth review of Greece and agreed "on the economic and financial policies needed to bring the government's economic program back on track."
51Print CommentThe officials said they believe Greece will be able to meet its 2011-2012 fiscal targets, citing a rebound in exports "albeit from a low base." The troika noted that rebound could lead towards "more balanced a sustainable growth over the medium term."
But the officials offered a dismal outlook on the fiscal future for Greece, noting that "the recession will be deeper than was anticipated in June and a recovery is now expected only from 2013 onwards."
Greece: This cannot end well
That European leaders also said that "additional measures" will probably be needed to "meet program targets" for 2013 in 2014.
Of the expected €8 billion installment, the European member states would provide €5.8 billion and the IMF, of which the United States is a member, would provide €2.2 billion.
The funding plan still needs final approval from the Europgroup and the IMF's executive board before it becomes a done deal.
The purpose of the funding is to help Greece avoid default on its loans, which would cause further disruptions to the European financial sector and Wall Street.