The mission did not undertake a comprehensive review. However, the discussions suggest that the agreed policies including fiscal developments, pension reform, privatisation and tax administration are being implemented as envisaged.
Staff teams from the European Commission (EC), the European Central Bank (ECB), and the International Monetary Fund (IMF) visited Athens during June 14-17 to follow up on recent developments and implementation of policies under the economic program for Greece.
While the mission did not undertake a comprehensive review, its discussions suggest that the program is on track and that policies are being implemented as agreed:
· Fiscal developments are positive with central government revenues coming in as expected and with firm expenditure control on the state budget. Based on preliminary cash data, through end of May, the state budget deficit was lower than was projected in the program. A final assessment will have to take into account developments outside central government, for which complete information is not available at this time.
· The pension reform is advanced and an agreement has been reached on many key parameters, as envisaged in the memorandum of understanding. The authorities are conducting the required projections to assess the contribution that pension reform will make to improve the long-term sustainability of public finances.
· Other structural reforms are also progressing, including in the areas of local administration, privatization, labour market and tax administration.
· In the financial sector, good progress is being made toward establishment of the Financial Stability Fund. Liquidity in the banking sector remains adequate.
© ECB - European Central Bank
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