Greece’s exit from the memorandum dominated yesterday’s discussion between Finance Minister Gikas Hardouvelis and International Monetary Fund (IMF) chief Christine Lagarde in Washington.
Greece has initiated a series of talks to end International Monetary Fund aid to the country, but will continue to have routine post-bailout reviews by the Washington-based group, a Greek official said after Sunday’s meeting. “The IMF continues with a post-program review in every country it lends to… we will have a relationship with the IMF but not under the same conditions,” he added.
The IMF confirmed that Lagarde met a handful of Greek officials – including the finance minister and the Bank of Greece governor – and praised Greece for improving its fiscal position. The IMF chief urged the country to continue to implement key structural reforms.
Greece has said it wants the current bailout to conclude at the end of the year, when EU funding stops. Technically, the IMF is scheduled to stay through early 2016.
Following the meeting, Hardouvelis flew to Luxembourg, where he is due to brief his Eurogroup counterparts today. Decisions are not expected to be taken at today’s Eurogroup meeting; the discussions will be crucial, however, for the coming Eurogroup meetings in November and December. “The IMF will be of assistance to the Greek effort in what we are trying to achieve,” Hardouvelis said after the half-hour meeting.
According to a senior government source, “discussions have started” and the “IMF is positive because it has contributed to this effort.”
According to a Fund statement on Sunday, talks focused on “the progress noted in the context of the program and the possible next steps.”
Lagarde asked for the efficient implementation of the crucial structural reforms included in the Greek streamlining program. She also congratulated the Greek government on its significant fiscal progress, reiterating the Fund’s pledge to support Greece as it continues to meet the targets of the program.
Finance Minister Hardouvelis released the following statement:
“We had an interesting discussion. Ms. Lagarde congratulated us for the great progress our country has made over the last years. She recommended continuing the reforms adding that these reforms should be made in such a way that they become property of the Greek people and go on. We should not retreat.
“The International Monetary Fund will be a contributor to the Greek effort and to what we are going to succeed.”
Regarding the terms of the period after the end of the funding program, government officials said they will not be the same as those currently implemented and any further support will not take the form of a bailout agreement.
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