Press Release No. 13/166

Press Release: IMF Executive Board Reviews Greece Misreporting, Remedial Steps

June 5, 2013

The Executive Board of the International Monetary Fund (IMF) has reviewed a non-complying purchase by Greece totaling SDR 2.79 billion (about €3.3 billion) that was made on January 18, 2013, following the completion by the Executive Board of the first and second reviews under Greece’s Extended Arrangement under the Extended Fund Facility.

The non-complying disbursement arose as a result of misreporting on the observance of a prior action for the completion of the review. The prior action was part of the strategy to strengthen Greece’s tax administration and required that 50 auditor staff be transferred to the unit responsible for high-wealth individuals. Prior to the Board meeting, the authorities furnished information to the Fund indicating that the prior action had been met. After the disbursement, it became known that the number of staff who took up duty in the high-wealth individual unit fell short of the target. While 50 transfers were ordered, only 33 auditors took up duty as a result of retirements, promotions, and other factors. Prompt corrective action has since been taken to increase the number of auditors in the unit to even exceed the aims of the prior action, and on this basis the Executive Board granted a waiver for the nonobservance of the prior action.

The Extended Arrangement was approved in March 2012 for a total amount equivalent to SDR 23.78 billion (about €28 billion) to support Greece’s 2012–2016 economic program (see Press Release No. 13/13). So far, Greece has received disbursements amounting to the equivalent of SDR 4.19 billion (about €4.9 billion).