Euro Muscles in Brussels: Christine Lagarde on Greece
IMF Blog, July 22, 2011
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- Authors: iMFdirect
- Published: July 22, 2011
Debt sustainability and leaders' commitment
- Christine Lagarde described the European leaders' deal as "a very constructive and comprehensive package of measures to resolve debt problems."
- Key quote: “What to me is critical—really a game-changing decision—is the leaders’ commitment and determination to provide support to countries until they have regained market access, provided that they successfully implement their programs.”
Financing package for Greece
- The 17 heads of state of the eurozone have agreed to provide €109 billion in fresh financing for Greece.
- The €109 billion, together with voluntary contributions from the private sector and continued support from the IMF, is intended to close the financing gap in Greece’s budget and give the country the breathing room it needs to restore growth and competitiveness.
IMF involvement and policy stance
- Greece has not yet requested a new program from the IMF.
- Lagarde stated the IMF’s intention “to be an active participant in helping Greece restore growth, debt sustainability and return to financial markets.”
European Financial Stability Facility (EFSF) flexibility
- European leaders agreed to make the terms of the European Financial Stability Facility more flexible.
- Lagarde noted: “This flexibility is a key element, in the view of the IMF,” and emphasized that the measure had been called for by the IMF in its recent assessment of the euro area.
iMFdirect — July 22, 2011
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