Search ForexCrunch

When asked about the planned European Union (EU) recovery fund, in an interview with Der Spiegel on Monday, the International Monetary Fund (IMF) Chief Economist Gita Gopinath, said that the substantial part must consist of grants rather than loans.

In case of more attribution to loans then it will not promote economic recovery, she added.

This comes after Ursula von der Leyen, President of the European Commission said on Friday, the EU recovery fund deal needs to be agreed before the summer holidays.

The EU leaders are set to hold the next meeting on the EU recovery plan and long-term budget on July 17th and 18th.

Market reaction

The shared currency is little affected by the above comments, as EUR/USD challenges highs near 1.1260, as US dollar loses ground across the board amid mixed market sentiment.