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Monday, 30 January 2017

Greece: Three weeks to deal with 'potentially disastrous' debt, says IMF (Helena Smith reports)


Helena Smith, The Guardian: Failure of Greece and the EU to reach compromise by 20 February ‘would bring back Grexit with a vengeance’.

These stories never seem to stop...

Eurozone bailout fund says Greek public debt is ‘manageable’, eKathimerini

IMF Press Briefing, January 26 - not very helpful

Financial Times - Greece faces ‘explosive’ surge in public debt, IMF warns - Athens will owe three times national GDP unless given debt relief, says leaked report

"Greece faces what is likely to be an “explosive” surge in its public debt levels that within decades will mean it will owe almost three times the country’s annual economic output unless given significant debt relief, the International Monetary Fund has warned in a confidential report.
The new report was prepared by IMF staff ahead of a February 6 board meeting to discuss the fund’s participation in an EU-led €86bn bailout of Greece and signals the continuing hard line the IMF is taking on debt relief for Athens. It offers a bleaker view of Greece’s economic dilemmas than an analysis prepared last year, warning that the debt load is “highly unsustainable” and would not improve even if it implemented further reforms recommended by the fund. That assessment would, under the fund’s own rules, prohibit the IMF from taking part financially in the current bailout, something countries such as Germany have made a condition of their own support. “Even with these ambitious polices in place, Greece cannot grow out of its debt problem,” IMF staff warned in the report, seen by the Financial Times and drafted as part of the fund’s annual review of member economies. “Greece requires substantial debt relief from its European partners to restore debt sustainability.”The IMF declined to comment, citing a policy of not commenting on leaked material. The fund calculated that Greece’s debt load would reach 170 per cent of gross domestic product by 2020 and 164 per cent by 2022, “but become explosive thereafter” and grow to 275 per cent of GDP by 2060."

IMF disputes EU's bailout for Greece, EU Observer - The EU's bailout programme for Greece will push its government debt to 275 percent of GDP by 2060, an International Monetary Fund draft report says.

France warns ‘window is closing’ for Greek bailout deal, FT/Greek Crisis


A referendum under discussion? (Thanks to KTG for link) - Βουλευτής ΣΥΡΙΖΑ: Συζητάμε να κάνουμε δημοψήφισμα

Greece at an Impasse Over Creditors’ Demands, Greek Reporter

Taxpayers’ Arrears to the State up 1.278 Bln Euros in Dec, Greek Reporter


Greek Markets Tumble as EU Holds Up Payment Amid IMF Doubts, Bloomberg - "Almost two-thirds of the actions creditors have demanded for the disbursement of the next tranche of emergency loans have yet to be completed, the government conceded in a memo discussed between Finance Minister Euclid Tsakalotos and bailout auditors last week in Brussels, a person familiar with the matter said".

EU tells Greece, ‘No IMF, no money’, eKathimerini

Grexit? Greece again on the brink as debt crisis threatens break with EU, The Guardian

Greece is in a mess but not at the brink, Reuters

IMF Report on Greece Shows Contingency Fiscal Measures are Unavoidable

‘Grexit’ on the cards? A perfect storm is brewing in Greece, Helena Smith, The Irish Times

















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