The International Monetary Fund (IMF) approved the disbursement of the next tranche of Greece's international bailout while IMF managing director Christine Lagarde noted the country's progress but insisted that more needs to be done.

After having approved a series of tax hikes and other reforms last week, another €3.24bn (£2.69bn) in aid will be given to Athens after the IMF's executive board gave approval to the measures taken and Lagarde applauded recent efforts: "Greece has made progress with structural reforms, reflected in recent actions to reduce non-wage labor costs and reform the product market."

Nevertheless, Lagarde was clear that the battle was not over for the Hellenic Republic. "Much more remains to be done to achieve the critical mass of reforms needed to boost productivity and lower prices," she said.

She stressed the need for reducing barriers to competition, delivering on privatization plans and strengthening the Greek banking system.

JM

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