The International Monetary Fund (IMF) released the latest tranche of the Greek bailout fund yesterday (December 5), following agreement between EU finance ministers last week. In a statement the IMF revealed that their executive board had completed the fifth review of Greece's economic performance under the standby arrangement, which allowed the immediate disbursement of about EUR 2.2 billion. The total funds now disbursed stands at around EUR 20.3 billion.

The standby arrangement for Greece was agreed in 2010 and forms part of a joint package with the EU to eventually give Greece EUR 110 billion over three years. The IMF also released comments on the review of Greece's economic performance, and warned that the Greeks face more tough times ahead. “Greece has substantial achievements to its credit, including a large fiscal deficit reduction. However, the program is in a difficult phase, with structural reforms proceeding slowly, the economy weak, and the external environment deteriorating. This has warranted a substantial downward revision to the medium-term outlook,” said Christine Lagarde, IMF Managing Director and Executive Board Chair.

She went on to praise the Greek unity government for endorsing IMF objectives but urged Greece to move ahead rapidly with the implementation of fiscal reforms, privatizations and debt reduction.

Liam Lever, liam@romania-insider.com

(photo source: Photoxpress.com)