Home Greek news economy Troika Estimates Greece Will Need Further Financial Support

Troika Estimates Greece Will Need Further Financial Support

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troikaGreece ’s international creditors in Europe and Washington estimate that besides the loan of 10-20 billion euros currently under negotiation, the Greek economy will need further financial support in order to stay afloat by 2016.

Troika officials have estimated that Greece’s fiscal deficit for the years 2014 and 2015 will reach the amount of 8 billion euros and 11 billion euros by 2016. Thus, a loan of 20 billion euros would be enough for Greece to meet its financial obligations.

However, troika fears that Greece’s fiscal deficit will be bigger than initially predicted, despite the impressive primary surplus that the Greek government managed to achieve during the last year. Troika predicts that the fiscal gap of the Greek economy could reach and even surpass the amount of 14 billion euros. This estimation is based on the lack of progress in the Greek privatization process and on some judicial decisions that have stalled some of the memorandum’s measures.

More accurate estimations on Greece’s deficit could be made after the double-elections (Greek local elections for the European Parliament). Meanwhile, from May to August the Greek government must to pay 16.8 billion euros in expired Greek bonds. Thus, a new loan of 30 billion euros will be necessary in order for Greece to meet its financial obligations.

Nonetheless, if a new “bailout package” is considered as necessary by both Greece and its lenders, further drastic and strict measures will be asked for in return.

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  • strongmenabc

    The writing is on the wall. More austerity further drastic and strict measures will be asked for. Isn’t time to EXIT the euro?
    At what point is enough is enough with this brutality that is not working?

  • strongmenabc

    The writing is on the wall. More austerity calls for more drastic and strict measures. When is enough is enough with these brutal measures that are not working? Greece needs to exit the Eurozone.

  • MAKEDONSKA AKROPOLA

    Fake “Greex” no more. The truth is implacable and no “Grease” Never-Never land can be hold on foreign loans eternally.

  • Polycrates

    With less than 30% of the population paying their tax bill, unemployment rising and the public sector employment remains largely intact the prospects are not bright. So the gamesmanship begins again among the lenders and the financial bleeding will continue in Greece.

  • Polycrates

    The lenders are not so much concerned about Greece as they are about their loans being secured. Most have mitigated their exposure as much as possible in order to avoid being burned as was the case with the PSI. The most difficult issue is for Eurocrats to make a decision in unity and stick to it without cheating and/or undercutting the others. This has become a high stakes game of LIARS POKER.

  • TediUSA

    WHO KNEW?

  • Bee Vee

    I sincerely doubt that the Greeks have any more appetite or capacity for further cuts. What we will then end up is in a game of brinkmanship with the troika and the EU.

  • TediUSA

    The loans are designed to cover the Greek bond obligations,not to fund the budget deficit.Greece will have to impose further cuts Loans or not simply because it runs 4.1% /2013/budget deficit without counting the bonds repayment.

  • Bee Vee

    Bailout loans or not, with an economy in tailspin they simply lack the ability to service these sustainably. So expect another breakpoint.

  • ali

    Shut your trap Bulgarofski