Ministers welcomed the progress made by the Greek authorities in implementing the policy understandings reached with the European Commission, in liaison with the ECB, and the IMF. In particular, Ministers noted with satisfaction the adoption of key laws on the fiscal strategy and privatisation by the Greek Parliament. Ministers therefore endorsed the Commission’s Compliance Report and the signing of the updated Memorandum of Understanding.
The Greek authorities provided a strong commitment to adhere to the agreed fiscal adjustment path and to the growth-enhancing structural reform agenda, which are essential components of our strategy to restore fiscal sustainability and safeguard financial stability. Ministers call on all political parties in Greece to support the programme’s main objectives and key policy measures in order to ensure a rigorous and swift implementation.
In line with the 24 June European Council conclusions, consultations with Greece’s creditors are underway in order to define the modalities for voluntary private sector involvement with a view to achieving a substantial reduction in Greece’s year-by-year financing needs, while avoiding selective default. Ministers took note of the statement issued by the Institute of International Finance on behalf of its members as well as of the commitments that have been made by financial market participants in some Member States. The precise modalities and scale of private sector involvement and additional funding from official sources will be determined in the coming weeks so as to ensure that, inter alia, required program financing is in place. This financing strategy is intended to form the basis for launching a new medium-term programme to support Greece’s adjustment efforts.
Ministers agreed that the main parameters of a multi-year adjustment programme for Greece will revolve around a continued strong commitment to implementing fiscal consolidation measures as well as ambitious and concrete structural reform and privatisation plans. It will be supplemented by large-scale technical assistance, provided by the Commission and Member States.
Against this background and on the basis of the debt sustainability analysis by the Commission and the IMF, Ministers approve the disbursement of the fifth tranche of the current Greek Loan Facility by 15 July following approval by the IMF Board, as originally envisaged.