Friday, March 16, 2012
IMF Executive Board Approves €28 Billion Arrangement Under Extended Fund Facility for Greece
Press Release No. 12/85
March 15, 2012
The Executive Board of the International Monetary Fund (IMF) today approved a four-year SDR 23.8 billion (about €28 billion, or US$36.7 billion) arrangement under the Extended Fund Facility (EFF) for Greece in support of the authorities’ economic adjustment program. The approval allows for an immediate disbursement of SDR 1.4 billion (about €1.65 billion, or US$2.2 billion). The EFF arrangement entails exceptional access to IMF resources, amounting to 2,159 percent of Greece’s quota.
The Executive Board also took note of Greece’s cancellation of the three-year Stand-By Arrangement (SBA) for Greece which had been approved in May 2010.
Official sector support for the second Greek program entails €130 billion (about US$170 billion) in new financing, in addition to the remainder of the financing support for the first program of €34 billion (about US$44 billion). The IMF contribution of €28 billion will be disbursed in equal tranches over a four-year period. It represents about three-elevenths of the total, excluding payments related to the private sector involvement (PSI) and repayments of bonds held by the European Central Bank. This will keep the Fund’s peak-exposure broadly unchanged relative to the SBA.