IMF’s Blanchard says Greece may need more aid

IMF’s Blanchard says Greece may need more aid

The International Monetary Fund's outgoing chief economist thinks Greece may need more money than the fund thought even last week.

In a blog post, Olivier Blanchard said Greece will likely need more than the 60 billion euros or so that the Fund indicated in a report last week. He said a big portion of the additional help is needed to help Greeces banks which are exposed to shaky Greek government bonds and have been fighting an outflow of deposits.

Blanchard also said Greece may need more generous debt relief than anticipated and that Greeces European creditors considered the analysis "as too pessimistic."

Greece has sent creditors a list of reform proposals in order to get 53.5 billion euros ($59.5 billion) of financing for three years and is hopeful of getting some sort of debt relief in return.