The Greek authorities have pressed forward with implementing their economic programme, with a focus on restoring fiscal sustainability, reforming tax collection, boosting competitiveness through structural reforms, and recapitalising the banking sector. The economic downturn is expected to bottom out this year, with a gradual recovery taking hold in 2014.
Following the Executive Board's discussion, Ms Christine Lagarde, Managing Director and Chair, stated: “The Greek authorities have made commendable progress in reducing fiscal and external imbalances and in restoring competitiveness. The authorities remain committed to make rapid progress on productivity-enhancing structural reforms and on tax and public administration reforms.“
“Greece is well underway to complete its ambitious fiscal adjustment plan, and is on track to meet its 2013 fiscal targets. A critical priority is to tackle tax evasion by pressing forward rapidly with reform of the revenue administration to improve operational independence and make the burden of adjustment more equitable. Pressures to reduce taxes using the space from any fiscal over-performance should be resisted. Decisive steps are needed to reform public administration, including through targeted staff reductions, to lower costs, improve efficiency, and increase fairness.“
"The recapitalisation of core banks and resolution of non-core banks are nearing completion. The authorities must reinforce the governance framework and return to the private sector the stakes in banks that are under the government’s control at an early time. The authorities are reforming the insolvency and non-performing loan resolution frameworks, to facilitate the repair of balance sheets and restoration of credit growth.“
“Public debt is projected to remain high well into the next decade. The assurances from Greece’s European partners that they will consider further measures and assistance, if necessary, to reduce debt to substantially below 110 per cent of GDP by 2022, conditional on Greece’s full implementation of all conditions contained in the programme, are welcome. Their continued commitment to provide adequate financial support to Greece during the life of the programme and beyond until it has regained market assess, provided that Greece complies fully with the programme, is also essential.”
Full press release
Transcript of an IMF-Conference Call on Greece Article IV Consultation, with IMF Mission Chief Poul Thomsen, 5.6.13
© International Monetary Fund
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