The IMF said at its headquarters in Washington on Sunday that it has approved a three-year, 30-billion-euro ($38-billion) loan to Greece.

It was reported that the loan is part of a 110-billion-euro, European Union-IMF aid package to help Greece out of its financial woes.

The IMF will make 5.5 billion euros immediately available to Athens, with 10 billion over the course of the rest of the year from the IMF and 30 billion from the EU this year.

The step would "contribute to the broad international effort underway to help bring stability to the euro area and secure recovery in the global economy," IMF Managing Director Dominique Strauss-Kahn said.

He also said that help from the international community should help return Greece to economic growth.

Strauss-Kahn said, "The Greek government should be commended for committing to an historic course of action that will give this proud nation a chance of rising above its current troubles and securing a better future for the Greek people."

IMF vice director John Lipsky said that the IMF believes austerity measures instituted by Athens will help Greece overcome the crisis.

He also said, "The Greek authorities have now developed a bold program with strong upfront policies to re-establish credibility and regain market confidence." (With Inputs from Agencies)