IMF: Greece needs €50bn to stabilise finances

Greece needs a staggering €50bn (£35bn) over the next three years to stabilise its finances under existing bailout plans, the International Monetary Fund says.

The IMF has also slashed its forecast for Greek economic growth from 2.5 per cent to zero and repeated warnings the country needs extended repayment periods and lower interest rates in order to cope with its debts, the BBC reports.

The report has been published ahead of a vote on Sunday on the bailout terms presented to the embattled nation.

The European Commission has set out proposals for the Greek government to raise taxes and cut welfare spending to meet its debt obligations.

Greek prime minister Alex Tsipras has called on Greeks to reject the creditors’ plans and claims doing so will lead to a “better agreement”.