The International Monetary Fund (IMF) on Friday approved a 3.2-billion-euro aid package to Greece to help the debt-hit country from an impending default.
The Executive Board of the IMF completed the fourth review of Greece's economic performance under a program supported by a three-year Stand-By Arrangement (SBA) for Greece.
The new disbursement has brought total support from the Fund to about 17.4 billion euros to Greece. The SBA, which was approved on May 9, 2010, is part of a joint financing package amounting to 110 billion euros over three years.
IMF Managing Director Christine Lagarde noted that Greece has made progress in its fiscal consolidation plan.
"The program is delivering important results: the fiscal deficit is being reduced, the economy is rebalancing, and competitiveness is gradually improving," Lagarde said in a statement.
"However, with many important structural reforms still to be implemented, significant policy challenges remain. A durable fiscal adjustment is needed, lest the deficit get entrenched at an unsustainably high level, and productivity-enhancing reforms should be accelerated, lest growth fail to recover," said Lagarde who took office on July 5.
She called for continued liquidity support from the European Central Bank and other stakeholders.
"Greece's debt sustainability hinges critically on timely and vigorous implementation of the adjustment program, with no margin for slippage, and continued support from European partners and private sector involvement," Lagarde added.