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Greece now has room to pursue reforms, says Dallara

Greece has been given the necessary room to implement the necessary structural changes to overhaul its anemic economy, Charles Dallara, managing director of the Institute of International Finance, told CNBC.

?We?ve given Greece a huge breathing space so they now have a burden lifted off and an opportunity to pursue reforms that are needed,» Dallara said on the sidelines of the China Development Forum in Beijing.

After months of tortuous negotiations, a second bailout for Greece finally became a reality earlier this month when eurozone nations formally approved the plan and authorized the release of the first multibillion-euro loan installment. The rescue package was signed after a successful debt swap with private bondholders, also known as PSI.

Nevertheless, Dallara was cautiously optimistic about the ability of European governments to overcome the lingering eurozone crisis, stressing the need for growth-inducing measures.

?It is too early to tell. They have an opportunity now with the ECB providing liquidity, cutting interest rates. The environment is gradually improving there. There is a lack of a comprehensive recipe for growth and this worries me,? he said.