Greece will begin its in principle economic adjustment plan following the declaration of their European partners to be debt sustainable and progressive, as $1.3 billion was approved as a Stand-By Arrangement by the Executive Board of the International Monetary Fund (IMF) on July 21.

“I strongly welcome Greece’s new economic adjustment program, which focuses on policies that will help restore medium-term macroeconomic stability and growth, and supports the authorities’ efforts to return to market financing on a sustainable basis,” IMF Managing Director and Chair of the Executive Board Christine Lagarde said.

The program seeks to re-align and balance the budget, increase market stability, enforce inclusive programs for the future, and increase the country’s growth. For years, Greece has been in debt, which allowed for economic downfall. This included “limited access to financing, record-high non-performing loans, and remaining capital controls are holding back investment,” as reported by IMF.

“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,” Lagarde said.

Following this decision, an Executive Board will make the arrangement operational. That meeting will be held on Aug. 31, 2018.