The International Monetary Fund warned again about the issue of red loans through its representative Rishi Goyal who spoke at Economist conference and stressed that banks should be able to support the recovery of the Greek economy adding that if they do not manage to improve their balance sheets, there will be a problem.

Goyal said that “the IMF remains committed to continuing the programme in Greece and to everything it has pledged”.

He added that the government was committed to continuing the reforms and changes in the labour market and to proceeding with the opening up of closed professions.

He also stressed that it is important banks to provide liquidity so as to boost business activity.