The International Committee for the Mediterranean Games (ICMG) announced on Friday its decision to take the 2013 Mediterranean Games from Greece.

In early December 2010, the Greek organising committee for the Med Games had rejected claims the country could lose the event over budget issues, responding to comments by the International Committee's president Amar Addadi, that Greece was in the “red zone” after failing to build two planned villages for athletes and officials.

The cities of Volos and Larisa in central Greece were awarded the event in 2007, but the government’s decision to withdraw 190 million euros of funding for the accommodation projects amid the country’s economic crisis had placed doubts over Greece’s ability to host the event as early as September 2010.

Finance Minister Yiorgos Papakonstantinou had then told organisers they should not count on government funding.

At the time, the ICMG said it fully understood Greece’s financial situation, but it slammed what it described as “a lack of respect regarding some commitments within the bid file and the contract and the lack of simple respect towards the ICMG and its representatives as an international sports institution”.

Loosing the event could further damage the country's reputation.