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The question of the sustainability of the Greek debt should be discussed today at 5 pm Greek time of the Executive Board of the International Monetary Fund as part of the report on Article 4 of Greece [19659002] Washington,
By Thanasis K Tsitsas
This report is expected to be published on Tuesday, July 31.
It is reported that the Greek debt is not viable after 2033 but is viable in the medium and short term, noting that will require new interventions – new measures to make [19659006] The IMF will note that recently agreed debt relief with its European partners has significantly improved medium-term debt sustainability, but the longer-term outlook remains uncertain.
For the IMF, it is essential that any additional debt relief be based on realistic badumptions, particularly Greece's ability to maintain particularly high primary surpluses. The markets will be marked, they may be open now, but it will be difficult to maintain market access without further debt relief.
The report will stress that Greece needs to continue reforms to boost productivity and competitiveness and develop faster, starting with the lifting of capital controls and tackling the very high percentage of red loans to Greek banks.
The IMF's Executive Board should insist on the implementation of the legally adopted fiscal package for 2019-2020, which includes cuts in pensions and tax cuts
The IMF warned that in 2019 the Greek government should carry out targeted social protection with funds from savings in the pension system and that 2020 should reduce high tax rates by expanding the tax base for income tax
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