The success of Greece’s reform plan depends on the framework that is put in place and how the overhaul is implemented, International Monetary Fund chief Christine Lagarde said on Wednesday.
“We need to see in practice how it’s going to be implemented,” Lagarde told MSNBC in an interview.
Key details remain to be seen in efforts to collect taxes on the wealthy, address corruption and make society more equitable as Greece hammers out the reform plan with its partners in the next four months, Lagarde said.
Greece has received numerous loans in the past four to five years but Lagarde applauded the country’s recent fiscal progress and urged deeper economic reforms as the country pushes ahead with its plan.
Greece has benefited from bailout funds from the European Union and the IMF as it sought to fend off financial collapse, and EU officials have said it likely will need a third round of aid long-term, although confusion remains over any such rescue.
Last month, Greece won a four-month extension of its current financial rescue.
“They’ve made progress over the years,” Lagarde told MSNBC.
“But now clearly number one, they should not lose the benefit of that progress and, two, they really have to reform in-depth the economy so that it works, so that it’s attractive again and so that people want to invest in Greece, so that people want to lend to Greece.”