The International monetary fund is worried about the recovery in Europe

The International Monetary Fund also warned that growth is too weak to afford problems of debt, deficit and unemployment and advised structural reformations, fiscal consolidation and measures to strengthen the banking system.

About the solvency reports twill be published tomorrow, the International Monetary Fund assured that although the market seems to be Ok with the process, the relative doubts on the reliability of tests will provably continue.

The International Monetary Fund called for a major transparency of data used to elaborate the tests and their results , entity by entity if possible. The International Monetary Fund also suggested to uses the solvency tests in smaller entities too.

Luc Everaert, chief of the commission in the Eurozone of the International Monetary Fund, warned that the Euro is near his equilibrium point and pointed that if keeps in the current rank, will help the running consolidation process.

The International Monetary Fund, forecasts that the Eurozone Will Grow by 1% this year and by 1.3% in 2011, but reiterated that is necessary a growth among 1.5% and 3% to change the bad sign of debt.

Mr Everaert also pointed that results of solvency tests of the 91 main European credit entities that will be published tomorrow will be “essential” to restore the trust of markets.

The report mentions that the fiscal crisis “threatens” the recovery and could drive to a persistent unemployment. The International Monetary Fund also pointed that this process will be partially lightened by the depreciation of the Euro.

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The members From the International Monetary Fund will remain in Athens around a week since tomorrow, when they are scheduled to arrive. However, the organization presided by Dominique Strauss-Kahn didn’t speak about a possible financial aid to Greece.

This team will analyze “possibilities for the International Monetary fund to dispatch technical assistance, about the pension reformation, tributary policy and administration, and budget administration” according the spokesman of the International Monetary Fund informed.

The Economic plans of Greece are being questioned and the government of the country wants to convince the European Investors and the Stranger Investors that they are able to reduce deficit and national debt. Nowadays, Greek public accounts are the worst in all the European Union and the fear of a worse crisis is increasing.

Greece treasures a big national debt

Last year, the Greek national debt close with a deficit equal to 12,7% of the Gross Domestic Product (GDP), what increased his national debt to 113% of GDP. Furthermore, the fear of a possible bankruptcy of Greek accounts is still alive, and specially since the recent crisis of Dubai.

The International financial risk qualification agencies itself, trimmed the rating of Greece, making the Greek national debt more expensive.

At the same time a spokesman of the International Monetary Fund visited the Arab Emirates (AEU),to get informed about the current situation of the economy in the country. The results of the report will be delivered to the Executive Committee from the International Monetary Fund, that will analyze them next weeks.

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