## Press Release: IMF Completes Third Review Under Stand-By Arrangement for Greece and Approves €4.1 Billion Disbursement

_IMF News, March 14, 2011_

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**Canonical URL:** [Press Release: IMF Completes Third Review Under Stand-By Arrangement for Greece and Approves €4.1 Billion Disbursement](https://www.imf.org/en/news/articles/2015/09/14/01/49/pr1177)

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## Bibliographic details
- Published: March 14, 2011

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### Review outcome and financing
- Date of press release: March 14, 2011
- The Executive Board completed the third review of Greece’s economic performance under a three-year Stand-By Arrangement (SBA).
- Immediate disbursement: amount equivalent to SDR 3.6 billion (about €4.1 billion).
- Total Fund disbursements under the SBA after this disbursement: amount equivalent to SDR 12.725 billion (about €14.6 billion).
- The SBA was approved on May 9, 2010 (Press Release No. 10/187).
- The cooperative financing package with Euro area member states amounts to €110 billion over three years.
- The SBA entails exceptional access to IMF resources, amounting to more than 3,200 percent of Greece’s quota.

### Assessment of economic program progress
- Program objectives: put the economy on a path of sustainable growth by boosting competitiveness, strengthening financial sector stability, and securing sustainable public finances.
- Progress noted:
  - Output remains close to the targeted path.
  - Underlying inflation remains low.
  - Unit labor costs are falling.
  - Significant fiscal adjustment is under way.
  - Overall, a measure of stabilization has been achieved.
- Caveats and remaining needs:
  - Underlying fiscal and broader reforms necessary for medium-term objectives are gradually being put in place, but some major reforms still need to be designed and implemented to build a critical mass to underpin fiscal sustainability and economic recovery.

### Policy recommendations and action priorities (from Mr. John Lipsky, First Deputy Managing Director and Acting Chair)
- Fiscal framework and budgeting:
  - Complete by May a medium-term budget strategy to help put fiscal adjustment on a firmer foundation.
  - Address a projected budget gap: implementation should begin during 2011.
  - The strategy of under-executing the state budget to offset revenue shortfalls and overspending at subnational levels cannot be sustained.
  - Redouble efforts to combat tax evasion and control spending, especially at the local government level.
  - Ensure a fair distribution of the adjustment burden; continue dialogue with social partners.
- Structural reforms to support recovery:
  - Deepen structural reforms.
  - Fully implement legislation to liberalize regulated professions.
  - Implement reforms pertaining to collective bargaining and the pension system.
  - Reduce administrative barriers to exports.
  - Formulate a strategy to unlock potential in the tourism sector.
- Privatization and asset use:
  - Scale up privatization and real estate development program.
  - More efficient use of state assets will support fiscal adjustment, promote growth and employment, and help Greece retire maturing debt.
- Financial sector stability:
  - The financial system remains stable.
  - Time will be provided to allow banks to deleverage and restructure in an orderly fashion.
  - Capital support through the FSF remains available to viable banks if necessary.

### Concluding statement
- The authorities are commended for their commitment to the program, which "will help Greece return to growth and prosperity," Mr. John Lipsky said.

*International Monetary Fund — Press Release No. 11/77*

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## References

- [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)
- [https://www.imf.org/en/home](https://www.imf.org/en/home)

_Source: https://www.imf.org/en/news/articles/2015/09/14/01/49/pr1177_