Since May 2010, the euro-area Member States and the IMF provide financial support to Greece in the context of a sharp deterioration of its financing conditions.

On 2 May 2010, the Eurogroup agreed to provide bilateral loans pooled by the European Commission for a total amount of EUR 80 billion to be disbursed over the period May 2010 through June 2013. The financial assistance agreed by euro-area Member States is part of a joint package, with the IMF financing additional EUR 30 billion under a stand-by arrangement (SBA).

>> see also: Economies of the EU member states - Greece

Implementation

Under the Greek Loan Facility, the European Commission is not acting as a borrower but has been entrusted by the euro-area Member States with the coordination and administration of the pooled bilateral loans, including their disbursement to Greece.

Overview of disbursements, EUR billion (as of December 2011)

Second economic adjustment programme for Greece

On 14 March 2012, euro area finance ministers approved financing of the second Greek economic adjustment programme for an amount of up to EUR 130 billion until 2014, including an IMF contribution of EUR 28 billion. Euro area Member States also authorised the EFSF to release the first instalment of a total amount of EUR 39.4 billion, which will be disbursed in several tranches. The release of the tranches will be based on observance of quantitative performance criteria and a positive evaluation of progress made with respect to policy criteria in Council Decision 2011/734/EU of 12 July 2011 (as amended in November 2011 and on 13 March 2012) and the Memorandum of Understanding setting the economic policy conditionality, which was signed on 14 March.

The finance ministers noted the assessment of the Troika that Greece has implemented all agreed prior actions in a satisfactory manner, and reiterated the importance of further strengthening Greece's institutional capacity. The ministers also based their decisions on the results of the debt sustainability analysis provided jointly by the Commission, the IMF and the ECB. The high private sector involvement (PSI) in Greece's debt exchange offer will make a significant contribution to improving Greece's debt sustainability. Out of a total of EUR 205.6 billion in bonds eligible for the exchange offer, approximately EUR 197 billion, or 95.7% have been exchanged.

The second economic adjustment programme is aimed at putting Greece's public debt ratio on a downward path to below 117% of GDP by 2020, building the basis for sustainable growth and jobs in Greece.

The programme will be accompanied by strengthened monitoring of the implementation of reforms in Greece.

Documents

01/03/2012

Memorandum of Understanding (MoU) between the European Commission, acting on behalf of the euro-area Member States and the Hellenic Republic [605 KB]

News articles and press releases

14/03/2012	Statement on Greece by the President of the Eurogroup, Jean-Claude Juncker
09/03/2012	Statement by Commission Vice-President Olli Rehn on private sector participation in the second Greek programme
08/03/2012	Eligibility of bonds issued or guaranteed by the Greek government in Eurosystem credit operations
06/03/2012	Letter from President Barroso to Prime Minister Papademos
01/03/2012	Statement on Greece by the President of the Eurogroup, Jean-Claude Juncker
29/02/2012	Nominate an EU Commissioner to help return Greece to growth, says Juncker to European Parliament
29/02/2012	Statement by President Barroso following his meeting with Mr Lucas Papademos, Greek Prime Minister
27/02/2012	Invitation from President Barroso to Prime Minister Papademos
21/02/2012	Statement on Greece by Vice-President Rehn at the Eurogroup
21/11/2011	Statement by President Barroso following his meeting with Lucas Papademos, Prime Minister of Greece. (SPEECH 11/778)
11/10/2011	Statement by the European Commission, the ECB and IMF on the Fifth Review Mission to Greece
13/09/2011	Questions and Answers on the Task Force for Greece
07/09/2011	Olli Rehn European Commissioner for Economic and Monetary Affairs Overcoming the Economic Crisis in Greece and Europe "Reset Greece" - ALDE Seminar Brussels
02/09/2011	Statement by the European Commission, the ECB and IMF on the Fifth Review Mission to Greece
27/07/2011	Information on IIF offer and debt-buy-back scheme
21/07/2011	Euro-area summit agreement on a new financial support programme for Greece
02/07/2011	Statement by the Eurogroup
02/07/2011	Greece - Commission publishes compliance report and recommends that disbursement should take place
03/06/2011	Statement by the EC, ECB and IMF on the Fourth Review Mission to Greece
24/02/2011	Statement by the EC, ECB and IMF on the Third Review Mission to Greece
23/11/2010	Statement by the EC, ECB, and IMF on the Second Review Mission to Greece
05/08/2010	Statement by the EC, ECB, and IMF on the first review mission to Greece
07/07/2010	The economic adjustment programme for Greece - Interim review
17/06/2010	EC, ECB and IMF Interim review mission to Greece, press statement
31/05/2010	The economic adjustment programme for Greece, Occasional Papers no 61
03/05/2010	Euro area and IMF agreement on financial support programme for Greece
11/04/2010	Eurogroup statement on the support to Greece
26/03/2010	Spring European Council statement on Greece

Programme reports

• The Second Economic Adjustment Programme for Greece - March 2012
• The Economic Adjustment Programme for Greece. Fifth review - autumn 2011
• The Economic Adjustment Programme for Greece. Fourth review - spring 2011
• The Economic Adjustment Programme for Greece. Third review - February 2011
• The Economic Adjustment Programme for Greece. Second review - autumn 2010
• The Economic Adjustment Programme for Greece. First review - summer 2010
• The Economic Adjustment Programme for Greece