A deal between Greece and its international lenders for more fiscal reforms settles one issue that has blocked the International Monetary Fund's financial participation in the bailout, but debt relief is still needed, an IMF spokesman said on Tuesday.
The spokesman said the IMF has long maintained that Greece's bailout program must have both reforms to meet fiscal surplus targets and debt relief in order for the Fund to participate.
In a joint statement with Greece's European lenders, the IMF said: "the Greek authorities have confirmed their intention to swiftly implement this policy package. This preliminary agreement will now be complemented by further discussions in the coming weeks on a credible strategy for ensuring that Greece's debt is sustainable."
Greece's government early on Tuesday promised to cut pensions and give taxpayers fewer breaks to pave the way for the disbursement of further rescue funds.