## IMF Welcomes New Eurozone Understanding on Greece

_IMF Blog, February 21, 2012_

## Source details

**Canonical URL:** [IMF Welcomes New Eurozone Understanding on Greece](https://www.imf.org/en/blogs/articles/2012/02/21/imf-welcomes-new-eurozone-understanding-on-greece)

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## Bibliographic details
- Authors: Greece
- Published: February 21, 2012

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### Key statement and outlook
- 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."

### Conditions for IMF engagement and program recommendation
- 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."

### Strengthening the financial firewall and global implications
- 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."

### Institutional context
- 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.*

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## References

- [Christine Lagarde](http://www.imf.org/external/np/omd/bios/cl.htm)
- [she welcomed](http://www.imf.org/external/np/sec/pr/2012/pr1253.htm)
- [Europe](http://www.imf.org/external/region/eur/index.htm)
- [Berlin speech](http://www.imf.org/external/np/speeches/2012/012312.htm)
- [transcript](http://www.imf.org/external/np/tr/2012/tr022312.htm)
- [IMF and Europe](http://www.imf.org/external/np/exr/facts/europe.htm)
- [Greece](http://www.imf.org/external/np/exr/countryfacts/grc/)
- [Poland](http://www.imf.org/external/pubs/ft/survey/so/2012/CAR020312A.htm)
- [Portugal](http://www.imf.org/external/pubs/ft/survey/so/2011/CAR122211B.htm)
- [Hungary](http://www.imf.org/external/pubs/ft/survey/so/2012/NEW012512A.htm)
- [review](http://www.imf.org/external/pubs/ft/survey/so/2012/POL011312A.htm)
- [fiscal](http://blogs.imf.org/2012/01/29/fiscal-adjustment-too-much-of-a-good-thing/)
- [danger zone](http://blogs.imf.org/2012/01/24/exit-danger-zone/)

_Source: https://www.imf.org/en/blogs/articles/2012/02/21/imf-welcomes-new-eurozone-understanding-on-greece_