ECONOMY

IMF is against collateral for Greece

The International Monetary Fund is opposed to the eurozone?s plans of asking Greece for collateral in the second bailout package for this country, according to a report by Bloomberg on Friday, quoting unnamed sources.

The report suggests that the use of collateral as demanded by Finland would deny the IMF priority creditor status and violate Greek bondholders? rights.

Spending cuts and tax increases are a better way than collateral of keeping Greece in line, sources from the Fund told Bloomberg.

The IMF will decide at the end of this month whether or not to disburse the sixth installment of its share in Greece?s first bailout package.