IMF scales back Greece aid to $23.6 billion

WASHINGTON: The International Monetary Fund intends to contribute 18 billion ($23.6 billion) in fresh funds to the second aid package for Greece, scaling back IMF help for the nation that triggered Europe's debt crisis.

The planned IMF contribution disclosed represents 14% of the 130 billion second rescue of Greece being arranged with the euro area. The IMF accounted for 27% -- or 30 billion -- of Greece's initial 110 billion bailout in May 2010.

"The IMF is trying to manage a difficult balance between staying involved in the rescue package for Greece while limiting the risk to its own funds," Eswar Prasad, a senior fellow at the Brookings Institution in Washington and a former IMF official, said. The IMF is "increasing its overall exposure to Greece. This poses both financial and political risks for the fund."