WASHINGTON, July 20 (Xinhua) -- International Monetary Fund (IMF) executive board on Thursday approved 1.8 billion U.S. dollars of stand-by loan arrangement for Greece in principle.
"The arrangement, which supports the authorities' economic adjustment program, has been approved in principle, which means it will become effective only after the Fund receives specific and credible assurances from Greece's European partners to ensure debt sustainability, and provided that Greece's economic program remains on track," said the IMF in a statement.
The arrangement will expire on Aug. 31, 2018, shortly after the expiration of the European Stability Mechanism program, said the statement.
In June, Euro Group approved the disbursement of 8.5 billion euros (9.9 billion dollars) to Greece, completing the second assessment of Greece's third bailout program review with the IMF participation.
"The program provides both breathing space to mobilize support for the deeper structural reforms that Greece needs to prosper within the euro area, and a framework for Greece's European partners to deliver further debt relief to restore Greece's debt sustainability," said IMF Managing Director Christine Lagarde in the statement.
