The International Monetary Fund is sending $2.95 billion to Greece, the latest instalment in a joint effort to help the ailing government avoid a default on its debt.

The global lending organisation’s rescue package follows $10.7 billion provided by the 17 euro-zone nations last week. Greece’s huge budget deficits and shrinking economy have made it impossible for the country to borrow in private markets, which has necessitated a bailout by the IMF and 17-member euro-zone.

Christine Lagarde, managing director of the fund, called on Greece’s new government, formed last month, to “steadfastly implement” its budget reforms.

The IMF agreed in May 2010 to contribute $40 billion to the euro-zone’s $147 billion bailout loan to Greece. The euro-zone and IMF are currently negotiating a second package with Greece.