International Monetary Fund (IMF) Managing Director Christine Lagarde intends to recommend that the IMF contribute 28 billion euro over four years to a new loan agreement with Greece, according to a statement she made on Friday.

“Today I have consulted with the IMF’s Executive Board and on that basis, as discussed with the Greek government, I intend to recommend a €28 billion (about US$36.7 billion) arrangement under the Fund’s Extended Fund Facility (EFF) to support Greece’s ambitious economic program over the next four years.

“Restoring competitiveness and a sustainable fiscal position will require Greece to undertake sustained and deep structural reforms over a prolonged period. My decision to recommend to the IMF’s Executive Board that the Fund should continue to assist Greece in this endeavor by providing substantial financial support over an extended period of time would be commensurate with the long-term nature of the challenges facing Greece and with the significant financial contributions provided by the private sector and by Euro Area member states. The scale and length of the Fund’s support is a reflection of our determination to remain engaged," she said.

Lagarde also welcomed the private sector response to the debt exchange offered by Greece, noting that this will dramatically reduce Greece’s medium-term financing needs and contribute to debt sustainability.

"The IMF’s continued support would be part of an integrated package where all parties-the Greek government, its European partners, the private sector, and the Fund-would play their part to help the Greek people overcome this crisis and over time restore growth, thus contributing to broader global financial stability," she added.

Lagarde said that she would put the proposal to the IMF's Executive Board for review next week.