WASHINGTON - The International Monetary Fund (IMF) on Thursday announced that it has approved a 28-billion-euro rescue loan for Greece.

The IMF executive board approved a four-year loan arrangement under the Extended Fund Facility (EFF) for Greece in the amount of special drawing right (SDR) 23.8 billion,or 28 billion euros, in support of Greek authorities' economic adjustment program, the IMF said in a statement.

The approval allows for an immediate disbursement of SDR 1.4 billion (about 1.65 billion euros) to the cash-strapped country, said the Washington-based global lender.

"The Executive Board also canceled the three-year Stand-By Arrangement (SBA) with Greece which had been approved in May 2010, " noted the statement.