INTERVIEW-IMF sees Greek financing deal in July - Lipton
ST PETERSBURG, Russia, June 21 (Reuters) - The International Monetary Fund hopes to reach a deal with Greece in July to extend fresh credit, after a time-out in talks for the government in Athens to review its economic strategy, First Deputy Managing Director David Lipton said.
"We've taken a pause because the government itself is having a discussion about its coalition and we've agreed to come back at the end of the month," Lipton told Reuters in an interview in St Petersburg, Russia, on Friday.
"As long as we can reach agreement by the end of July, funding is in place for the subsequent period and then we would be able to go forward."
Greece's performance on reforms required to unlock lending under a European Union-IMF bailout has slipped off track, with recent delays on privatisation a concern.
But Athens is "dedicated to solving the problems that their country faces", Lipton told Reuters.
In other comments, Lipton said emerging economies should let their financial markets function despite volatility triggered by the Federal Reserve's announcement of plans to wind down monetary stimulus aimed at driving a U.S. economic recovery.
The stimulus withdrawal would be a "net positive" that indicates the U.S. economy is strong enough to help the rest of the world, Lipton said. He also cautioned that China's credit-fueled investment model may be reaching its limits.
(Reporting by Douglas Busvine; editing by Ron Askew)