IMF chief to propose 28-bln-euro loan for Greece

The head of the International Monetary Fund (IMF) said Friday that she would advise the Fund to contribute 28 billion euros (about 36.7 billion U.S. dollars) to the second bailout package for Greece. "Today I have consulted with the IMF's Executive Board and on that basis, as discussed with the Greek government, I intend to recommend a 28 billion euros arrangement under the Fund's Extended Fund Facility (EFF) to support Greece's ambitious economic program over the next four years," IMF chief Christine Lagarde said in a statement. "The IMF's continued support would be part of an integrated package where all parties -- the Greek government, its European Partners, the private sector, and the Fund -- would play their part to help the Greek people overcome this crisis and over time restore growth, thus contributing to broader global financial stability," she added. The offer came after Greece secured strong support from private creditors. The government said private investors holding 85.8 percent of the bonds governed by Greek law would participate in the debt swap deal, clearing the way for Athens to win a 130- billion-euro (172 billion U.S. dollars) rescue package from other eurozone countries and the IMF. Lagarde welcomed the high participation rate of private investors in the debt swap program, saying it is an important step which would dramatically reduce Greece's medium-term financial needs and contribute to debt sustainability. Lagarde said the loan will be proposed to the IMF's Executive Board next week for review.