SPOTLIGHT

IMF Interaction with Greece during FY2015

IMF interactions with Greece continued on several fronts during FY2015, focusing on progress on implementing an economic program supported by an extended arrangement under the EFF and provision of technical assistance and training to the authorities in order to strengthen administrative capacity across a range of public functions.

In May 2014, the IMF Executive Board completed the fifth review of Greece’s performance under the extended arrangement. The completion of the review enabled the disbursement of about $4.24 billion under the arrangement, bringing total disbursements under the EFF to about $14.38 billion. In completing the review, the Executive Board approved a waiver of nonobservance of the performance criterion on domestic arrears.

As the year progressed, there were extensive interactions among the Greek authorities, senior Fund officials, and high-level representatives of euro area member governments, the European Commission, and the European Central Bank. These interactions addressed a range of issues related to the progress in reaching understandings that could pave the way to completion of the sixth review. These interactions contin-ued after national elections in January 2015 that led to the formation of a coalition government led by the Syriza Party.

An important element of the IMF’s interaction with Greece came in the area of capacity development. The areas covered included tax administration, public financial management, regulation and supervision of the banking system, and other key areas of public administration. Policy discussions are continuing in FY2016.

After the end of FY2015, Greece went into arrears to the IMF as its economic crisis deepened. These were cleared July 20, 2015. The IMF remains committed to helping Greece through this period of economic turmoil.