Greece has signed an international agreement to allow the debt-hit country to improve its tax management, the Paris-based Organization for Economic Cooperation and Development (OECD) said Wednesday.

The Convention on Mutual Administrative Assistance in Tax Matters is a multilateral agreement that was developed jointly by the Council of Europe and the OECD, and is open for signature to all countries, aiming to promote international cooperation in the assessment and collection of taxes.

It is also an effective and practical tool to help tax authorities in their everyday work.

"At a time when Greece is looking to shore up its economy in line with a new financial package supported by the Euro area countries and other stakeholders, the Convention will allow Greece to work more closely with other countries to combat tax avoidance and evasion," the OECD said in a statement.

"In addition to demonstrating its commitment to following the international standards on tax transparency and exchange of information, this signing is a step towards Greece's efforts to restore the longer-term sustainability of its public finances," said OECD Secretary-General Angel Gurria.

"The Convention will help Greece improve its internal tax collection system and pursue the tax revenues lost to tax avoidance and evasion. This will ensure that individuals and multinational enterprises pay the right amount of tax, at the right time and in the right place,"the OECD chief added.