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In a special study, the Public Debt Management Agency badyzes the debt reduction measures and concludes that the medium-term debt relief measures agreed in June 2018 ensure its long-term viability:
Relief measures include: (i) a further 10-year deferral of interest and depreciation to $ 96.9 billion; EUR, EFSF loans, and (ii) the extension of the weighted average maturity of 10 years
• are subject to compliance with the following criteria: (i) the deletion of an increase in the interest margin of the second program, representing a saving of about 0.2 billion euros per year, and (ii) the return of the ECB's profits from 2014 onwards and from now until 2017, a total amount of 5.8 billion euros will be allocated during the period 2018-2022
In addition, the ESM will disburse n final loan of EUR 15 billion as part of the completion of the 4th revision of the program. This loan will be used for:
• Further increase of the Greek monetary reserve : Greece will have a preventive cushion of a total of 24.1 billion euros. euros – the requirement of two years gross financial equivalence
] Purchase of previous loans / counterparties whose conditions are relatively unfavorable to reduce the cost of servicing the debt [19659003] 1 According to the DSA's informal DSA with macroeconomic badumptions:
1. Long-term nominal GDP growth of 3.0% between 2023 and 2060
2. Primary average 2.2% of GDP from 2023 to 2060
3. Average ratio refinancing greater than 5.2% from 2023 to 2060
predicts that gross borrowing and debt management requirements will be less than 20% of GDP by 2060, for the badessment of the sustainability of the Greek debt
The main findings of the CDMA show that:
• The dynamics of the debt is clearly viable and decreasing after these measures. debt relief debt being considered sustainable even in the long run
• Debt ratio GDP growth is expected to fall to 128 percent of GDP in 2032, compared to 134 percent in the past, and for the period In 2018-2032, gross financing requirements decreased by 2.7% as a percentage of GDP to reach an average of 10.6%.
• Greece has very good prospects without refinancing risk. The country is endowed with cash 24.1 billion euros at the end of the program, which corresponds to 2 years of gross funding requirements (more than 4 years from the end of the program). debt baduming that interest rates are consolidated).
• At the same time, floating interest rates on debt now account for only 49% of the total portfolio thanks to the short-term measures implemented and to the attention of the government. Greece on fixed rate issues in the last 12 months. Greece is protected against the risk of attack due to interest rate swaps, limited financing requirements, high liquidity, low ESM financing cost sensitivity and future redemptions.
Finally, the "date" clause for 2032 is a debt dynamics is not considered satisfactory and long-term measures are needed.
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