Last January of this year, the International Monetary Fund or IMF sent a mission to Athens Greece at the request of Greek officials to explore possible assistance to extend help to the debt stricken country. With its budget deficit rising 12.7 percent of its Gross National Product last year and debt climbed to 113 percent of its Gross Domestic Product (GDP), Greece was on the verge of a possible bankruptcy.
Greece has to redeem government bonds worth 8.5 billion euro ($12.2 billion) on May 19. In order to accomplish this redemption and at the same time prevent the country for a possible bankruptcy, Greece Prime Minister sought a bailout package worth 45 billion Euros (~$65 billion) from both European Union (EU) and International Monetary Fund (IMF) – 30 billion Euros from EU and 15 billion Euros from IMF.
According to the plan, if all the authorities in both EU and IMF agreed to the bailout package, Greece will be able to draw on 30 billion Euros from the other 15 members of the eurozone at an interest rate of 5 percent. The said interest rate of 5 percent would be more than 2 per cent lower than the rates being demanded by the international markets.
In the initial results of the vote of the Greece bailout package, German political parties have expressed resistance in approving the aid. According to one ruling coalition, IMF should not give the bailout package in lump sum to Greece. Instead, they should give it by tranches.