IMF says Greece on track with reforms

In a report Tuesday (September 14th), the IMF concluded that Greece is on track to cut its budget deficit according to plan this year, but should do more to improve tax collection and to control spending. According to the document, published a day after Athens received the second 9 billion-euro tranche of its 110 billion-euro aid package from the IMF and EU, the government will probably spend 4 billion euros less than originally estimated this year. This would compensate for lower-than-expected tax revenues and higher spending in the healthcare and public administration sector. The IMF says “additional fiscal measures are not warranted at this juncture.”

Greek Finance Minister George Papaconstantinou kicks off a European swing Wednesday aimed at acquainting investors with these latest economic developments and the progress achieved by reforms already undertaken. He travels to London first, then to Paris on Thursday. Accompanying him are senior delegates of the European Commission, along with officials from the European Central Bank and the IMF.