Bank lobby chief praises Greek austerity

(AP) The head of an international banking lobby has praised Greece's recently approved austerity package, saying it provides a comprehensive framework for reform.

Charles Dallara, managing director of the Institute of International Finance, said Greek governments had shown impressive willingness to bear short-term pain for long-term gain in passing a major round of new cuts. They were approved last week and are worth 13.5 billion ($17 billion).

Dallara led negotiations with Greece earlier this year to restructure the country's debt held by the private sector, wiping some 100 billion off the national debt.

Speaking at a banking event in Athens, Dallara said the eurozone countries need to find a better balance between austerity and growth, with an over-emphasis on cuts causing the risk of a protracted era of recession or low-growth.