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'Good Progress' Reported On Greek Bid To Secure Bailout Funds

The European Union and Greek flags fly above the Parthenon in Athens.
The European Commission says "good progress" has been made toward debt-crippled Greece receiving the next tranche of international bailout funds it needs to avoid a potentially disastrous default.

The statement was issued September 20 after a conference call between Greek Finance Minister Evangelos Venizelos and officials of the EU, the European Central Bank, and the International Monetary Fund (IMF).

Without receiving the next 8t-billion euro loan tranche from the EU and IMF, officials have warned that Greece will default on its debts, causing a potential major blow to the eurozone and the world economy.

In exchange for the funds, the international lenders say Greece must implement austerity measures including cutting government spending and privatizing state assets.

Earlier on September 20, the IMF warned that the global economy has entered what it called "dangerous new phase" because of the eurozone debt crisis and the fragile economic position of the United States, the world's biggest economy.

In its "World Economic Outlook" report, the IMF said issues surrounding the United States and eurozone economies could drag them into another recession.

compiled from agency reports