June 17 - Following is the text of a statement about Greek
economic reforms after an interim review on Thursday by the
European Union, the European Central Bank and the International
Monetary Fund.
The delegation is in Athens from June 14-17to check on the
country's progress in meeting the terms of a 3-year, 110-billion
euro ($135 billion) bailout plan.
"Staff teams from the European Commission (EC), the European
Central Bank (ECB), and the International Monetary Fund (IMF)
visited Athens during June 14-17 to follow up on recent
developments and implementation of policies under the economic
program for Greece.
While the mission did not undertake a comprehensive review
at this time, its discussions suggest that theprogram is on
track and that policies are being implemented as agreed:
"Fiscal developments are positive with central government
revenues coming in closely as expected and with firm expenditure
control in the state budget. Based on preliminarycash data,
through end-May, the state budget deficit was lower than was
projected in the program. A final assessment would have to take
account of developments outside central government, for which
complete information is not available at this time.
The pension reform is advanced and agreement has been
reached on many key parameters as envisaged in the memorandum of
understanding. The authorities are conducting the required
projections to assess the contribution that pension reform will
maketo improve the long-term sustainability of public finances.
Other structural reforms are also progressing, including in
the areas of local administration, privatization, labor market,
and tax administration. On the financial sector, good progress
is being made toward establishment of the Financial Stability
Fund. Liquidity in the banking sector remains adequate.
Next steps. The three teams will return to Athens toward the
end of July to conduct a comprehensive review under the program,
including an assessment of progress relative to quantitative
targets and benchmarks for end-June. This will be the first
formal review under the program. Satisfactory completion of this
review would enable Greece to make the second drawing under the
program."
(editing by John Stonestreet)
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Keywords: GREECE IMF/