IMF approves release of 4.3-billion-dollar loan to Greece

"The programme is moving in the right direction, with strong fiscal adjustment and notable labor-cost competitiveness gains," IMF Managing Director Christine Lagarde said.

She praised the progress made by Greece, but noted "more remains to be done to achieve the critical mass of reforms needed to boost productivity and lower prices," as well as to reduce competitive barriers, increase privatization and restructure the banking system.

The decision by the IMF's executive board was anticipated after Greece's parliament approved last week a series of tax reforms demanded by its creditors in order to secure continued aid. The reforms are expected to increase state revenues by 2.3 billion euros this year.

In December, the international creditors - the European Commission, European Central Bank and IMF - approved bailout loans of 49.1 billion euros following months of negotiations with the Greek government on a new round of austerity measures.

"Euro area member states have committed to work together with the Greek authorities and the IMF to ensure the success of the programme," Lagarde noted, "provided that Greece continues to cooperate closely with the IMF."

Greek Finance Minister Yannis Stournaras on Tuesday said Athens is expected to receive its next installment of bailout aid of 9.2 billion euros later this month.