21/02/2012 - OECD Secretary-General Angel Gurría has welcomed the 130 billion-euro financing programme for Greece agreed with euro area countries and other stakeholders.
“The financial support by the euro area and the IMF, along with an estimated voluntary 53.5% cut of Greek debt holdings by the private sector, will provide the necessary confidence and breathing space for Greece to work on its recovery and for Europe to address its sovereign debt crisis,” said Mr Gurría. “Long-term success will depend on Greece‘s efforts to advance the structural and social reforms necessary to fire its engines of economic growth up to full speed.”
The agreement on this new programme was made possible by the approval of a comprehensive policy package by the Greek Parliament and the assurance by the leaders of the two coalition partners to pursue the programme after the general election.
Mr. Gurría added that the measures included in the package are largely consistent with OECD recommendations to increase growth and competitiveness. It is urgent for Greece to improve tax collection, boost privatisation and reinforce structural reforms in labour and products markets.
As highlighted by the new agreement and OECD policy advice, the success of this programme hinges on a strict and timely implementation of the set of agreed measures. The enhancement of the technical assistance provided to Greece – to which the OECD is already contributing - in the context of the new programme and the strengthened monitoring mechanisms put in place are thus welcome.
The contribution from the private and the official sector (including the ECB and the Eurosystem), together with the sustained efforts of the Greek citizens to modernise their economy, will also contribute to bringing Greece’s debt ratio to the target of around 120% of GDP by 2020. This would be a significant step forward to help Greece regain market access and restore the conditions for sound and solid growth.
The OECD stands ready to continue to work with Greece and the European institutions in support of Greece’s ambitious reform agenda.
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