IMF Chief Pledges Support To Greece

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International Monetary Fund managing director Dominique Strauss-Kahn on Thursday said that the lender was ready to help Greece tackle its spiraling budget deficit if it was approached, but backed the country's government to take the necessary measures and bring the situation under control.

"We are there to help. I have a mission in place providing technical advice at the request of the Greek government and if they ask me to intervene, we will do it," Strauss-Kahn told France's RTL radio.

"But I completely understand the Europeans who want to try and resolve the problem among themselves."

The European Commission on Tuesday endorsed Greece's plans to reduce its deficit and the country is set to face intense scrutiny over the implementation of its ambitious plans.

Greece's deficit is over four times than E.U. rules allow and is estimated at about EUR 300 billion.

Its fiscal plan aims to reduce the budget deficit, estimated at 12.7% of gross domestic product, to less than 3% by 2012, but many analysts remain sceptical.

Strauss-Kahn expressed confidence in Greek Prime Minister George Papandreou to take the necessary measures.

"The Greek situation is very serious. I have confidence that Prime Minister Papandreou will take the necessary measures but they are difficult measures," he said.

Earlier this week, Papandreou called on the public to support the government's austerity measures, which includes increases on fuel duty and a public sector pay freeze.

Greece's debt crisis has rocked the eurozone with the issue seen as crucial to the stability and functioning of the single currency bloc.

International Monetary Fund managing director Dominique Strauss-Kahn on Thursday said that the lender was ready to help Greece tackle its spiraling budget deficit if it was approached, but backed the country's government to take the necessary measures and bring the situation under control. (Market News Provided by RTTNews)