Debt and reforms at the heart of the IMF meeting for Greece

The following day, the meeting of the International Monetary Fund for Greece was completed, during which the prospects for debt sustainability and the path of reform that the country will follow in the next post-program period.

For an hour on Friday morning, the Executive Board of the Fund reviewed the report on Article 4 on the course of the Greek economy, including the DSA (Sustainability Debt Analysis). The results of the report will be officially released on Tuesday, July 31.

In particular, the Governing Council once again reaffirmed the medium-term viability of the Greek debt. Even though the gap between the institutions for the long-term debt outlook remains open, the European side is committed to taking all necessary measures in case of need for the period after 2032. In this context, it has become clear that IMF-Europe will continue in the post-program supervision period.

Although the Article 4 report is a predictable process of the IMF, the sources of the Fund have described the timing of important, since Greece has a long time ahead of schedule. completion of the final MES program in August.

During the meeting, all parties acknowledged that Greece had achieved significant results. However, it was stressed that it is crucial that there is no complacency and that it is necessary for Greece to continue the reform effort and fulfill the obligations that she has contracted not to lose the sacrifices made by the country.

Red lending was another key issue discussed at the meeting as it was stressed that the situation should be adjusted as quickly as possible so that banks can contribute to the revival of the economy through new loans.

Finally, there were several views on the primary surpluses and some participants expressed doubts about the high targets that were set. A common thread on this issue was the need to find the gold policy section that would enable the achievement of fiscal targets, without compromising growth prospects and leading to a further widening of social inequalities.