The International Monetary Fund (IMF) said today it was not considering an increase in the value of planned loans to Greece, and repeated a debt default by the embattled euro zone member was not on the table.
The IMF's executive board meets on Sunday to act on Greece's request for a $40 billion standby arrangement. Atkinson said it was unclear what currencies would be used for the initial disbursement, but expected to have details next week.
The loans are the Fund's part of a joint €110 billion rescue agreed with the European Union.
"We fully expect that (package) to be sufficient. It's a three-year programme and the adjustment is front loaded, the measures are to be taken up front," IMF spokeswoman Caroline Atkinson told reporters.
"As we have said many times, default is not on the table, it has not been on the table. I believe the Greek authorities have repeated that ... In that sense it appears there is an overreaction (by markets)."
The programme, which will require Greece to make draconian budget cuts, has unleashed a wave of violent protests. Three people were killed yesterday by a petrol bomb attack on a bank.
Despite steps taken by both the IMF and the European Union, markets remain wary of contagion and investors are offloading riskier assets such as stocks.
Ms Atkinson said the IMF did not want to comment on market reaction, but said it was important to look at the steps that were being taken by other countries with budget deficit problems.
She said while it was not surprising that Greeks were worried and upset that the programme would involve sacrifices, violence was deplorable.
"The financial support from the EU and IMF is aimed to help the Greek economy ... put the economy on a path of strong sustainable growth with jobs and employment down the road," said Ms Atkinson.
The three-year programme for Greece was designed to ensure that the country had no need to go the market for at least until 2012, she said.
"If implemented, the package of adjustment will put Greece in a position to fully pay its debts and allow growth in the Greek economy down the road," said Ms Atkinson.
Reuters