The International Monetary Fund (IMF) on Thursday announced that it has approved a 28-billion-euro rescue loan for Greece.

The IMF executive board approved a four year loan arrangement through the Extended Fund Facility for Greece in the amount of special drawing right 28 billion euros, in support of Greek authorities' economic adjustment program, the IMF said in a statement.

The approval allows for an immediate disbursement of about 1.65 billion euros to the cash-strapped country, said the Washington-based global lender.

The Executive Board also canceled the three-year Stand-By Arrangement (SBA) with Greece which had been approved in May 2010, noted the statement.

Eurozone countries Wednesday formally approved the first tranche of 39.4 billion euro bailout funds of the second financing package for Greece, said Eurogroup chairman Jean-Claude Juncker. He also explained that the first tranche would be disbursed in several installments.

Euro area member states have today formally approved the second adjustment program for Greece, said Juncker in a statement, adding that all required national and parliamentary procedures have been finalized.

According to the statement, the first wave of fund would come from the European Financial Stability Facility (EFSF) while eurozone members are still at odds over future of EFSF once the permanent bailout funds European Stability Mechanism (ESM) comes into effect.

Though everyone seems happy with the second bailout package for Greece, analysts point out that this might still not be enough.

Many economists and analyst have warned that some serious problems are still out there for Greece, like over-spending of its citizens and continued outflow of funds from its banks.

Greece cannot regain access to financial markets until the current-account deficit is eliminated, and deposit flight stops.