Follow Us

Follow us on Twitter  Follow us on LinkedIn
 

09 October 2013

WSJ: IMF sees Greece missing 2014 bailout budget target


Greece is projected to miss a key bailout target for next year, according to the IMF's latest Fiscal Monitor report. This is likely to complicate already-fraught negotiations over the next tranche of financing for the ailing economy.

The IMF projects that Greece’s budget surplus will only hit 1.1 per cent of gross domestic product next year instead of the 1.5 per cent of GDP target outlined in its bailout terms with the IMF and the eurozone.

In the fund’s last review of the emergency financing programme, it said Athens was on track to meeting the target. But tax collection problems, anaemic growth and ongoing delays in a plan to sell off state assets have plagued the bailout programme.

The revelation is also likely to give eurozone officials another reason to delay serious talks on reducing Athens’ debt burden. The eurozone, which holds most of Greece’s government debt, vowed to give the country debt relief if the country hit its bailout targets, but declined to say exactly how. Officials in euro power Germany have expressed particular opposition to writing down the value of the debt, which many economists say will be necessary to meet the currency union’s debt-relief vow.

The Greek finance ministry promptly issued a statement on the fresh IMF projections, saying that Greece was complying with fiscal targets and would cover any future gap with further cuts in spending and improved tax compliance.

Full article

IMF-Fiscal Monitor Report



© Wall Street Journal


< Next Previous >
Key
 Hover over the blue highlighted text to view the acronym meaning
Hover over these icons for more information



Add new comment