IMF Welcomes New Eurozone Understanding on Greece

IMF Blog, February 21, 2012

Source details

Date: February 21, 2012
IMF Managing Director Christine Lagarde welcomed the "proposed understandings reached today by the Euro Group to support Greece."
Quoted assessment: “The combination of ambitious and broad policy efforts by Greece , and substantial and long-term financial contributions by the official and private sectors, will create the space needed to secure improvements in debt sustainability and competitiveness."
Quoted projection: "These actions, together with a significant strengthening of the financial sector, will pave the way for a gradual resumption of economic growth."

The IMF’s support is conditional on two elements:
- “As soon as the prior actions agreed with the Greek authorities are implemented and adequate financial contribution from the private sector is secured, I intend to make a recommendation to our Executive Board regarding IMF financing to support a program."
- Emphasis on "full and timely policy implementation by Greece and long-term support by euro area member states."
Social considerations: Recognizes "the sacrifice involved for the Greek people" and states the strategy "will also aim to minimize the impact on the poorest and most vulnerable."

The IMF welcomed discussions to ensure the adequacy of the European Financial Stability Facility (EFSF) and European Stability Mechanism (ESM).
Quoted rationale: Ensuring EFSF and ESM adequacy "will help bolster the firewall against financial contagion, catalyze efforts to enhance IMF resources, and help secure global stability for the benefit of all."

IMFBlog described as a forum for IMF staff and officials on pressing economic and policy issues.
Institutional fact: "The IMF, based in Washington D.C., is an organization of 191 countries, working to foster global monetary cooperation and financial stability around the world."
Disclaimer: "The views expressed are those of the author(s) and do not necessarily represent the views of the IMF and its Executive Board."

Source: IMF blog post titled "IMF Welcomes New Eurozone Understanding on Greece", February 21, 2012.