The aim of this article is to explore the implications of the delegation of powers from central bureaucracies to semi-autonomous agencies for public administration under policy conditionality. Focusing on Greece, we argue that agencification reforms that were introduced during the economic adjustment programs (2010–2018) have changed the role of the administrative apparatus in policy-making and implementation. Based on two exemplary case studies, tax administration and state assets management, the empirical findings illustrate the political dynamics that induced organizational transformation and show how policy conditionality has changed the domestic agencification pattern and has rebalanced the institutional, functional, and democratic dimensions of agencies.