{
  "title": "Press Release: IMF Executive Board Completes Fifth Review Under Stand-By Arrangement for Greece and Approves €2.2 Billion Disbursement",
  "publication": "IMF News, December 5, 2011",
  "sourceUrl": "https://www.imf.org/en/news/articles/2015/09/14/01/49/pr11440",
  "canonical": "https://www.imf.org/en/news/articles/2015/09/14/01/49/pr11440",
  "overlayPath": "/en/news/articles/2015/09/14/01/49/pr11440/index.md",
  "summary": "The Executive Board completed the fifth review of Greece’s economic performance under a program supported by a three-year Stand-By Arrangement (SBA).",
  "publishDate": "2011-12-05",
  "sections": [
    {
      "heading": "Fifth review outcome and disbursement",
      "content": "- The Executive Board completed the fifth review of Greece’s economic performance under a program supported by a three-year Stand-By Arrangement (SBA).\n- Completion of the review enables the immediate disbursement of an amount equivalent to SDR1.9 billion (about €2.2 billion).\n- Total Fund disbursements under the SBA now amount to an amount equivalent to SDR 17.5 billion (about €20.3 billion)."
    },
    {
      "heading": "Performance criteria, waivers, and data revision",
      "content": "- The Executive Board approved:\n  - Modification of performance criteria.\n  - Waivers of non-observance of performance criteria related to:\n    - the primary cash balance for the general government,\n    - privatization receipts,\n    - external payments arrears.\n  - Waivers for the non-observance of the external payments arrears performance criterion following minor data revision after the approval of the arrangement."
    },
    {
      "heading": "SBA program design and exceptional access",
      "content": "- The SBA was approved on May 9, 2010 (see Press Release No. 10/187).\n- The SBA is part of a joint package of financing with Euro area member states amounting to €110 billion over three years.\n- The arrangement entails exceptional access to IMF resources, amounting to about 2,400 percent of Greece’s new quota as a result of the 2008 quota reform."
    },
    {
      "heading": "Managing Director Christine Lagarde — assessment and outlook",
      "content": "- Positive achievements noted:\n  - “Greece has substantial achievements to its credit, including a large fiscal deficit reduction.”\n- Key risks and current difficulties:\n  - “The program is in a difficult phase, with structural reforms proceeding slowly, the economy weak, and the external environment deteriorating.”\n  - These factors “have warranted a substantial downward revision to the medium-term outlook.”\n- Political context:\n  - “The creation of a national unity government and the endorsement of program objectives and policies by major parties is an important step.”\n  - The new government should “use its wider mandate to steadfastly implement the program.”"
    },
    {
      "heading": "Policy priorities and recommended actions",
      "content": "- Fiscal policy\n  - “Fiscal adjustment remains the most immediate challenge for the authorities.”\n  - Recent enactment of new measures will help correct implementation slippages.\n  - Adjustment efforts must be supported by prompt implementation of underlying fiscal reforms to:\n    - downsize the public sector,\n    - strengthen tax collection.\n- Financial sector stability\n  - “Preserving financial sector stability is another key challenge.”\n  - Plans to recapitalize banks are in place alongside a revised resolution framework to:\n    - avoid disruptions to depositors,\n    - contain public sector costs.\n  - “Viable banks should continue to have access to liquidity support.”\n- Privatization\n  - “The government’s privatization plan can deliver higher investment, growth, and debt reduction.”\n  - Preparations must move forward expeditiously to give the Privatization Agency scope to meet the overall program target in a reasonable timeframe.\n- Structural reforms and competitiveness\n  - “Structural reforms must accelerate to help improve competitiveness via productivity growth.”\n  - Plans are in place to reduce high labor taxes.\n  - Authorities must finalize:\n    - the liberalization of closed professions,\n    - implementation of business environment reforms.\n- Debt sustainability and external support\n  - “Private sector involvement and prolonged support at low interest rates from European partners are crucial to reduce debt to a sustainable level.”\n  - “Near-universal participation in the proposed private debt exchange will be important to realize a sustainable debt position, meet financing needs, and ensure continued Fund support.”\n\nPress Release No. 11/440 — December 5, 2011\n\n---\n\n\n References\n\n- Greece and the IMF\n- Press Releases\n- PRESS CENTER\n- Press Release No. 10/187\n- 2008 quota reform\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2015/09/14/01/49/pr11440"
    }
  ],
  "bullets": [
    "[Markdown version](/en/news/articles/2015/09/14/01/49/pr11440/index.md)",
    "[Structured JSON version](/en/news/articles/2015/09/14/01/49/pr11440/index.json)",
    "[Bundle manifest](/en/news/articles/2015/09/14/01/49/pr11440/bundle-manifest.json)",
    "Published: December 5, 2011",
    "The Executive Board completed the fifth review of Greece’s economic performance under a program supported by a three-year Stand-By Arrangement (SBA).",
    "Completion of the review enables the immediate disbursement of an amount equivalent to SDR1.9 billion (about €2.2 billion).",
    "Total Fund disbursements under the SBA now amount to an amount equivalent to SDR 17.5 billion (about €20.3 billion).",
    "The Executive Board approved:",
    "The SBA was approved on May 9, 2010 (see Press Release No. 10/187).",
    "The SBA is part of a joint package of financing with Euro area member states amounting to €110 billion over three years.",
    "The arrangement entails exceptional access to IMF resources, amounting to about 2,400 percent of Greece’s new quota as a result of the 2008 quota reform.",
    "Positive achievements noted:",
    "Key risks and current difficulties:",
    "Political context:",
    "Fiscal policy",
    "Financial sector stability",
    "Privatization",
    "Structural reforms and competitiveness",
    "Debt sustainability and external support",
    "[Greece and the IMF](http://www.imf.org/external/country/GRC/index.htm)",
    "[Press Releases](https://www.imf.org/en/news/searchnews)",
    "[PRESS CENTER](http://presscenter.imf.org/)",
    "[Press Release No. 10/187](https://www.imf.org/external/np/sec/pr/2010/pr10187.htm)",
    "[2008 quota reform](https://www.imf.org/external/np/sec/pr/2011/pr1164.htm)",
    "[https://www.imf.org/en/home](https://www.imf.org/en/home)"
  ],
  "alternates": {
    "markdown": "/en/news/articles/2015/09/14/01/49/pr11440/index.md",
    "json": "/en/news/articles/2015/09/14/01/49/pr11440/index.json",
    "bundleManifest": "/en/news/articles/2015/09/14/01/49/pr11440/bundle-manifest.json"
  },
  "generatedAtUtc": "2026-09-26T18:54:09.846Z"
}