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IMF on Greece: 'The stakes are high'

17 June 2011 Last updated at 17:57 BST

The leaders of Germany and France have said they want a new rescue package for debt-laden Greece to be agreed as soon as possible.

Angela Merkel and Nicolas Sarkozy were speaking after Greece's Prime Minister George Papandreou announced a cabinet reshuffle.

Mr Papandreou wants to impose political stability as Greece awaits approval for the next tranche of bail-out money.

Speaking to the BBC, the IMF's Olivier Blanchard said the organisation did not believe that a Greek default was inevitable.