Lagarde: Implementation of program, debt relief essential for Greece to return to growth

The decisive implementation of Greece’s adjustment program along with debt relief is important in leading the country out of the crisis, the head of the International Monetary Fund (IMF), Christine Lagarde, said after a meeting with Prime Minister Alexis Tsipras in Washington DC.

“I complimented him [Tsipras] and the Greek people on the notable progress Greece has achieved in the implementation of the difficult policies, including recent pension and income tax reforms,” she said in brief comments to the press.

“The IMF recently approved in principle a new arrangement to support Greece’s policy program. Resolute implementation of this program, together with an agreement with Greece’s European partners on debt relief, are essential to support Greece’s return to sustainable growth and a successful exit from official financing next year. The Prime Minister and I are committed to working together towards this goal,” she added.

On his side, Tsipras said they had the opportunity to discuss the short-term and long-term prospects of the Greek economy. Greece has turned a page after years of stagnation and that the efforts of its people are starting to pay off. He said there is a visible exit from the crisis and that it is in everyone’s interest to complete the third program review as quickly as possible.

The completion of the review will allow the Greek economy to maintain its upward trend, he continued, noting that the IMF will play an important role.