Bailouts

IMF to Loan Greece $40 Billion

In part of the largest bailout in history, the International Monetary Fund gave the green light on a $40 billion loan for debt-saddled Greece on Sunday—hoping to prevent a wider financial crisis. The deal came after a meeting of finance ministers from across the region in Brussels on Sunday; analysts fear that Portugal, Spain, and Ireland, in particular, would be next in line to ask for monetary assistance, and the leaders were hoping to offset a domino effect. IMF Managing Director Dominique Strauss-Kahn said in a statement that the three-year loan package, which totals $147 billion, “will contribute to the broad international effort under way to help bring stability to the euro area and secure recovery in the global economy.” Greece has already agreed to deep spending cuts, despite protests from citizens: Rioters stormed the Parthenon last week, as demonstrations turned deadly.