Press Release No. 17/38 FOR IMMEDIATE RELEASE February 6, 2017
International Monetary Fund 700 19th Street, NW Washington, D. C. 20431 USA
IMF Executive Board Concludes 2016 Article IV Consultation, and Discusses Ex Post Evaluation of Greece’s 2012 Extended Fund Facility
On February 6, 2017, the Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation1 with Greece. The Executive board also discussed the Ex Post Evaluation of Exceptional Access under the 2012 Extended Arrangement under the Extended Fund Facility with Greece 2. Background Greece has made significant progress in unwinding its macroeconomic imbalances since the onset of the crisis. However, extensive fiscal consolidation and internal devaluation have come at a high cost to society, reflected in declining incomes and exceptionally high unemployment. The large adjustment costs, and the considerable political instability that ensued, contributed to delays in reform implementation since the last Article IV Consultation, and culminated in a confidence crisis in mid-2015. The economic situation has stabilized since then, as the authorities commenced a new policy adjustment program supported by the European Stability Mechanism. The new program aims to strengthen public finances, restore the banking sector’s health, and boost
1
Under Article IV of the IMF's Articles of Agreement, the IMF holds bilateral discussions with members, usually every year. A staff team visits the country, collects economic and financial information, and discusses with officials the country's economic developments and policies. On return to headquarters, the staff prepares a report, which forms the basis for discussion by the Executive Board. 2
The requirement for ex post evaluations (EPEs) was agreed by the IMF Executive Board in September 2002 for members using exceptional access in capital account crisis, and extended to any use of exceptional access in February 2003. The aim of an EPE is to determine whether justifications presented at the outset of the individual program were consistent with IMF policies and to review performance under the program. To do this, EPEs seek to provide a critical and frank consideration of two key questions: (i) were the macroeconomic strategy, program design, and financing appropriate to address the challenges the member faced in line with IMF policy, including exceptional access policy? and (ii) did outcomes under the program meet the program objectives?
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