Washington, May 10: The International Monetary Fund (IMF) has approved a three-year, 40 billion dollars (euro 30 billion) loan for the debt-hit Greece amid escalating concerns over the financial turmoil spreading to other European countries.
IMF's executive board met on Sunday, May 9 and approved the loan, which comes as part of a 140 billion dollar package (euro 110 billion) negotiated with other Eurozone countries.
Over the past few weeks the global markets have been reacting adversely to the Greece debt crisis and the fears of it spreading. The IMF's loan comes as a sigh of relief for international investors.
To avail the IMF loan, Greece has agreed to enact tax hikes as well as commit to austerity measures by implementing cutbacks in government spending.