English
Πέμπτη, 26 Ιανουαρίου 2017 22:17

Media report from Athens: IMF study shows Greek debt not sustainable

The Greek debt, under present conditions, is not sustainable, according to an IMF study, Greece's state-run television broadcaster reported on Thursday evening.

The Greek debt, under present conditions, is not sustainable, according to an IMF study, Greece's state-run television broadcaster reported on Thursday evening.

The same report claims the IMF has judged the recent short-term debt relief measures as inadequate, with a restructuring necessary to make the debt load sustainable.

The same report by the ERT broadcaster has the Fund maintaining that solutions lie long-term debt relief with a horizon extending to far-off 2060, rather than short-term measures.

In touching on one of the core differences with European creditors over the Greek program, the IMF purportedly also stresses that primary budget surplus targets for Greece should fall under 1.5 percent of GDP after 2018 -- instead of the current 3.5 percent.

The study was given to IMF board members on Thursday, ERT reported, with its contents to be discussed at a special meeting on Feb. 6.

A greater grace period for repayment, deferred interest rate payment until 2040, extension of other maturities for loans extended by European institutions until 2070 and a reduction of interest on all ESFS and ESM loans for 30 -- under 1.5 percent -- are the solutions ostensibly proposed by the Fund.