DIFF: Durable and long-term debt

A first evaluation of the Eurogroup's measures is carried out by Public Debt Management Agency whereas the medium-term measures guarantee the long-term viability of the public debt

, the NRIC notes that these can be distinguished in:

• In the short term, already agreed in the Eurogroup in May 2016
• In the medium term, which will be implemented after the completion of the ESM program, if necessary
• Long-term, which will be activated after the completion of the MES program to ensure long-term debt sustainability, if necessary

According to the UDHR, the dynamics Debt is now "clearly viable" as the debt-to-GDP ratio is expected to fall to 128% of GDP in 2032 compared to the previous estimate of a 134% drop in GDP

In the same time, the country's financing needs will be reduced by 2.7% GDP and will be fixed at 10.6% of GDP per year both provided.

The PDMA points out that the cash reserve covers the country's borrowing requirements for nearly five years instead of two years. In particular, it states that the Eurogroup decision provides for a "cushion" of funds amounting to 27.4 billion at the end of the program. euro. Of this amount, 3.3 billion euros will be made available for the purchase of debts. The remaining € 24.1 billion will cover the country's borrowing requirements over a two-year period, the Eurogroup decides, but the ODIHR explains that the provision for the two-year period requires the repayment of treasury bills, the value of which is about 15 billion euros. Since treasury bills are recycled every three months, six months or twelve months and refinanced, the amount of the cash reserve covers the country's borrowing needs not only for 2 but for 4.8 years. During this period, the Greek state could not issue a single bond, simply refinance the treasury bills.

Also, for the period 2023-2060, these financial needs should remain below 20%, which is a key to sustainability. It is noted that on the basis of previous estimates, the 20% threshold would be breached much earlier than in 2060.

"Medium-term measures agreed in June 2018 ensure long-term debt sustainability ", in conclusion, the Agency, which estimates that the overall benefit of the new measures will reach 30% of GDP by 2060.