Statement by IMF Managing Director Christine Lagarde on the Meeting of the Euro Group

Press Release No. 12/53
February 20, 2012

Ms. Christine Lagarde, Managing Director of the International Monetary Fund (IMF), issued the following statement on February 21 in Brussels after the latest meeting of the Euro Group:

“I welcome the proposed understandings reached today by the Euro Group to support Greece.

“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. These actions, together with a significant strengthening of the financial sector, will pave the way for a gradual resumption of economic growth.

“The success of this strategy crucially depends on full and timely policy implementation by Greece and long-term support by euro area member states. Recognizing the sacrifice involved for the Greek people, the strategy will also aim to minimize the impact on the poorest and most vulnerable.

“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.

“I also welcome today's discussion on ensuring the adequacy of the European Financial Stability Facility (EFSF) and European Stability Mechanism (ESM), which will help bolster the firewall against financial contagion, catalyze efforts to enhance IMF resources, and help secure global stability for the benefit of all."

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