Euro area and IMF agreement on financial support programme for Greece

To support the Greek government's efforts to get its economy back on track, euro area Member States on 2 May pledged a three-year programme total of €80 billion in bilateral loans. Under the conditions set out in the Eurogroup statement of 11 April, up to € 30 billion out of this programme will be made available for 2010. Its first disbursment will be made by 19 May.

In addition, IMF reached an agreement with the Greek authorities to support this program with a stand-by arrangement of about €30 billion, bringing the joint commitment to a total financing of €110 billion.

Joint statement on financial support programme for Greece

Following the agreements, Commissioner Olli Rehn and IMF Managing Director Dominique Strauss-Kahn issued this joint statement on Greece:

"We strongly support the economic program announced today by the Government of Greece. The steps being taken, while difficult, are necessary to restore confidence in the Greek economy and to secure a better future for the Greek people. The program is unprecedented in the scope of the national effort required, as well as in the scale of the financial support-- €110 billion--being provided by euro area countries and IMF. We are confident that Greece will rise to the challenge and succeed.

We recognize that the program demands great sacrifice from the Greek people and, given the serious situation facing their country, it cannot be expected to turn the economy around overnight. A sustained, multi-year effort will be needed to bring down Greece's debt and spur competitiveness. If implemented effectively--and we believe it will be--the program will lead to a more dynamic economy that will deliver the growth, jobs , and prosperity that Greece needs in the future.

We believe that the program is the right thing to do to put the economy back on track. Importantly, the authorities' have also designed their program with fairness in mind so as to protect the poorest and most vulnerable, and ask for a fair sharing of the burden across Greek society. That is the right thing to do as well.

To be successful, the program will require a national commitment that goes beyond political party lines. The support from European countries, the European Commission and the European Central Bank, and the IMF demonstrates a very high level of external commitment --and attests to the goodwill for Greece from the international community. Our collective effort will also contribute to the stability of the euro and will benefit all of Europe.”

Follow up meeting with Van Rompuy on euro area governance

President of the European Council Van Rompuy announced that he would convene the Heads of state and government of the euro area for a meeting on 7 May to conclude the whole process and to draw the first conclusions for the governance of the euro area.

See also:
>> Press release IP10/485.  Statement of President Barroso on Greece  
>> Eurogroup. Statement on the support to Greece - Brussels, 2 May 2010
>> IMF Press release 10/176. IMF Reaches Staff-level Agreement with Greece on €30 Billion Stand-By Arrangement
>> European Council. PCE 80/10. Statement by President Van Rompuy following the Eurogroup agreement on Greece