IMF agrees to give Greece $4.2 billion

July 8, 2011 - 4:44 PM

WASHINGTON (AP) — The International Monetary Fund has approved providing Greece just over 3 billion euros ($4.2 billion) in the latest installment of a rescue package aimed at helping the country pull back from an impending debt default.

The move by the executive board was expected after a decision last week by eurozone finance ministers to give Greece their portion of a 12 billion euros ($17.39 billion) loan payment that is part of a 110 billion euro ($259 billion) package agreed on last year.

The IMF action Friday under new Managing Director Christine Lagarde came as European banks, insurance companies and other financial institutions were trying to get the private sector involving in helping save Greece from default.