Czech government approves 1.5 billion euro loan to IMF

The Czech government on Wednesday approved a 1.5 billion-euro loan to the IMF as part of the EU’s efforts to contain the debt crisis in the euro zone. The cabinet will now approach the Czech central bank to release the funds, and will provide guarantees for the loan, part of a 200 billion euro package to rescue the single European currency. The Czech Parliament has yet to approve the deal.

In December, EU leaders agreed to lend 200 billion euro to the International Monetary Fund in an attempt to ward off the bloc’s debt crisis. The EU asked the Czech Republic to contribute some 3.5 billion euro to the loan; an amount deemed too high by the country’s cabinet.

Author: Jan Richter