IMF sticks to plans for Greece despite early elections

(WASHINGTON) - The International Monetary Fund said Thursday that its finance program for Greece remains unchanged despite Athen's moves to an early presidential election which has rocked European markets.

Fund spokesman William Murray said it will continue with the crucial sixth program review -- assessing whether Athens is meeting reform and fiscal targets required under the bailout -- whatever happens in the vote on December 17.

The vote by 300 members of parliament to replace President Karolos Papoulias was due in February but a first round has now been set for next week.

The election is a key test for embattled Prime Minister Antonis Samaras, who would be forced to call snap general elections if his candidate -- former EU Environment Commissioner Stavros Dimas -- fails to garner enough support.

"Our focus at the moment is on the successful completion of the sixth review so that Greece can continue to put in place the essential conditions for sustainable growth and job creation and meet its fiscal targets under the existing Fund program," Murray said.

"The review can be completed provided there is swift progress on the policies needed to move forward."

Greece has said it wants to move off the current IMF loan program, part of the massive joint bailout with the European Commission and European Central Bank, and demonstrate it can return to borrowing on commercial debt markets without the strenuous austerity conditions of the past few years blamed for the country's deep recession.

Murray said the Greek government has not formally requested shifting the loan program to a "precautionary" line of credit from the IMF, but the move is expected and negotiations will likely begin in January, whatever the political situation.

"It's our understanding that the authorities now intend to continue the current fund arrangement on a precautionary basis. We welcome also their intention to request an enhanced condition credit line from the Europeans."

"Our plan is to return to Athens with a negotiating mission in January."

He said that a precautionary credit line from the IMF would still come with reform conditions.

"When you treat it as precautionary you still have this conditionality, but you are telling the world you don't intend to draw on the credit."