Officials from the International Monetary Fund are to return to Greece this week to determine if the country qualifies for another bailout loan in an effort to keep the economy from a default, according to reports. The fact that Greece will run out of cash by mid-October has regional exchange traded funds feeling the heat.
“The Managing Director of the International Monetary Fund, Christine Lagarde, met with Greece’s Finance Minister Evangelos Venizelos today in Washington. They discussed the terms under which the IMF mission would return to Athens to undertake the fifth review of Greece’s economic program–most likely this coming week,” the IMF said, according to a report from The Wall Street Journal.
Last week Athens took on a series of new measures including new taxes, layoffs in the public sector, and lower salaries and pensions, WSJ reported. [Europe ETFs Fall As Spotlight Remains on Greece]
Venizelos says that budget restrictions are going to undercut economic performance. For example, 30,000 employees of the government have been furloughed in order for Greece to meet budget targets for 2011.
This past weekend, officials from around the world met and pressured European leaders to gather a stronger response to the debt crisis. [Italy, Spain ETFs Fall over 15% in One Month]