WASHINGTON: A breakthrough European Union agreement Wednesday to release fresh bailout funds to Greece averted the threat of a massive default on its debt in coming months.
But the International Monetary Fund -- seen as a crucial partner to the eurozone country's bailout -- faulted the deal saying official EU creditors had still not spelled out long-term debt relief indispensable to strengthen Greece's finances.
Hours after eurozone finance ministers announced that they would unlock 10.3 billion euros ($12 billion) in bailout cash that Greece needs for looming bond payments, the IMF said it could not add its funds to the bailout as long as its demand for a detailed debt-relief plan had not been met.
European officials cheered the agreement reached after late-night talks as a breakthrough toward reviving the Greek economy, and claimed the IMF had agreed to join in with its own loans by the end of this year.
"The crisis between Greece and the eurozone is over and behind us," French Finance Minister Michel Sapin told a cabinet meeting in Paris Wednesday.
"By this, any liquidity crisis is excluded for the next months," said German Finance Minister Wolfgang Schaeuble.
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