IMF green lights 3.24-billion loan tranche for Greece

 

The IMF board met at 5 pm (Greek time) to investigate a report evaluating the sustainability of the Greek debt following the repurchase of state bonds.

 

The 3.24 billion euros are part of the 54.2 billion approved for Greece, while the Eurogroup meeting next Monday is expected also to approve the disbursement of 9.2 billion euros of the January tranche.

 

The IMF announcement reads:

 

"The International Monetary Fund today completed the first and second reviews of Greece's economic performance under a program supported by a four-year Extended Fund Facility (EFF) arrangement for Greece. The completion of the review-evaluation enables the disbursement of 2.798 billion units of special withdrawal right (about 3.24 billion euros or $ 4.3 billion), bringing the total disbursements from the Fund under the EFF to 4.197 billion units of special withdrawal right (about 4.86 billion euros or $ 6.46 billion). Upon completion of the review-evaluation, the board also approved exemptions from the application of performance criteria set for the end of December 2012, modified the performance criteria and reorganised the disbursements under the adjustment.

 

The EFF arrangement, which was adopted on 15 March 2012, is part of a joint financial package with member countries of the Eurozone that reaches 172 billion euros for a period of 4 years and includes special access to IMF resources, amounting to 2,159% of Greece’s quota".