Greece makes ‘strong’ progress, review finds

The Greek government’s economic programme to tackle its public deficit has made a “strong start”, according to the International Monetary Fund (IMF).

In its first quarterly review of Greece’s progress, the IMF says its end-of-June quantitative performance criteria have all been met.

It says this was led by a “vigorous implementation of the fiscal ­programme” and important reforms coming in ahead of schedule. (article continues below)

However, despite its endorsement of the work done so far, the IMF says “important challenges and risks remain”.

The IMF also raised its estimate for inflation in Greece in 2010 to 4.75% because of indirect tax increases. However, it adds, with no signs of second round effects inflation is expected to decline rapidly.