Press Release No. 12/72

Press Release No. 12/72
March 9, 2012

Managing Director Christine Lagarde of the International Monetary Fund (IMF) today made the following statement on Greece:

“Today I have consulted with the IMF’s Executive Board and on that basis, as discussed with the Greek government, I intend to recommend a €28 billion (about US$36.7 billion) arrangement under the Fund’s Extended Fund Facility (EFF) to support Greece’s ambitious economic program over the next four years.

“Restoring competitiveness and a sustainable fiscal position will require Greece to undertake sustained and deep structural reforms over a prolonged period. My decision to recommend to the IMF’s Executive Board that the Fund should continue to assist Greece in this endeavor by providing substantial financial support over an extended period of time would be commensurate with the long-term nature of the challenges facing Greece and with the significant financial contributions provided by the private sector and by Euro Area member states. The scale and length of the Fund’s support is a reflection of our determination to remain engaged.

“I welcome the cooperation of the private sector in participating in the debt exchange offer by the Greek authorities. This is an important step that will dramatically reduce Greece’s medium-term financing needs and contribute to debt sustainability. The IMF’s continued support would be part of an integrated package where all parties—the Greek government, its European partners, the private sector, and the Fund—would play their part to help the Greek people overcome this crisis and over time restore growth, thus contributing to broader global financial stability.

“I will put this proposal to the IMF’s Executive Board next week for review.”