## Press Release: IMF Completes Fifth Review Under Extended Fund Facility Arrangement for Greece and Approves €3.41 Billion Disbursement

_IMF News, May 30, 2014_

## Source details

**Canonical URL:** [Press Release: IMF Completes Fifth Review Under Extended Fund Facility Arrangement for Greece and Approves €3.41 Billion Disbursement](https://www.imf.org/en/news/articles/2015/09/14/01/49/pr14254)

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## Bibliographic details
- Published: May 30, 2014

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### Executive Board decision and disbursement
- The Executive Board completed the fifth review of Greece’s performance under an economic program supported by an Extended Fund Facility (EFF) arrangement.
- Completion of this review enables the disbursement of SDR 3.01 billion (about €3.41 billion, or US$4.64 billion).
- This disbursement would bring total disbursements under the arrangement to SDR 10.22 billion (about €11.58 billion, or US$15.75 billion).
- The Board approved a waiver of nonobservance of the performance criterion on domestic arrears, given the corrective actions taken.
- The Board approved the authorities’ request for rephasing three disbursements evenly over the remaining reviews in 2014, in light of delays in program implementation.

### Program context and financing
- The EFF arrangement was approved on March 15, 2012 (Press Release No. 12/85).
- The arrangement is part of a joint package of financing with euro area member states amounting to about €173 billion over four years.
- The arrangement entails exceptional access to IMF resources equivalent to about 2,159 percent of Greece’s quota.

### Key findings and economic assessment (statements by Mr. Naoyuki Shinohara, Deputy Managing Director and Acting Chair)
- “The Greek authorities have made significant progress in consolidating the fiscal position and rebalancing the economy. The primary fiscal position is in surplus ahead of schedule, and Greece has gone from having the weakest to the strongest cyclically-adjusted primary fiscal balance in the euro area in just four years. However, several challenges remain to be overcome before stabilization is deemed complete and Greece is back on a sustainable, balanced growth path.”
- Fiscal policy and public administration:
  - “Additional fiscal adjustment is necessary to ensure debt sustainability, through durable, high-quality measures, while strengthening the social safety net.”
  - “It is essential that the authorities continue to improve tax collection, combat evasion, and strengthen expenditure control. Public administration reforms need to be accelerated.”
  - “The authorities are taking remedial actions to clear domestic arrears and expedite privatization.”
- Structural reforms and competitiveness:
  - “Despite significant wage adjustment, export performance remains comparatively weak. The redoubling of efforts to liberalize product and service markets is therefore welcome.”
  - “Further measures are necessary to remove regulatory barriers to competition in key sectors and to reform investment licensing.”
  - “The authorities are committed to revitalizing labor market reforms and improving the business climate.”
- Banking sector and private debt resolution:
  - “Addressing the very high level of nonperforming loans remains an important priority. While there is no acute stability risk, it is critical for the economic recovery that banks be adequately capitalized upfront to recognize losses on the basis of realistic assumptions about loan recovery.”
  - “Efforts are being made to recapitalize the banking system and set aside the buffer of the Hellenic Financial Stability Fund to deal with contingencies that may arise during the program.”
  - “The private debt resolution framework should also be strengthened expeditiously.”
- Public debt outlook and external assurances:
  - “Public debt is projected to remain high well into the next decade, despite a targeted high primary surplus.”
  - “The assurances of Greece’s European partners are welcome that they will consider further measures and assistance, if necessary, to reduce debt to substantially below 110 percent of GDP by 2022, conditional on Greece’s full implementation of the program.”

### Key statistics (preserved exactly as in source)
- SDR 3.01 billion
- €3.41 billion
- US$4.64 billion
- Total disbursements under the arrangement: SDR 10.22 billion
- Total disbursements under the arrangement: about €11.58 billion
- Total disbursements under the arrangement: US$15.75 billion
- EFF arrangement approval date: March 15, 2012
- Joint package financing: about €173 billion over four years
- Exceptional access: about 2,159 percent of Greece’s quota
- Press Release number: No.14/254
- Press Release date: May 30, 2014

*Source: Press Release No.14/254, IMF Communications Department, May 30, 2014.*

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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. 12/85](https://www.imf.org/external/np/sec/pr/2012/pr1285.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/pr14254_