“Greece’s debt can now only be made sustainable through debt relief measures that go far beyond what Europe has been willing to consider so far.” -IMF
One of Greece’s main creditors, The International Monetary Fund (IMF), released today an official analysis, urging for immediate restructuring of Greece’s “unsustainable” public debt.
“Greece’s public debt has become highly unsustainable,” reads the report.
“This is due to the easing of policies during the last year, with the recent deterioration in the domestic macroeconomic and financial environment because of the closure of the banking system adding significantly to the adverse dynamics.”
With Greece’s debt “expected to peak at close to 200 percent of GDP in the next two years,” the analysis says that there is no other way to actually save Greece.
IMF, steps in the game after most European institutions that hold Greece’s biggest chunk of debt have repeatedly denied to start talks on restructuring Greek public debt.
The Greek government has asked repeatedly for a write-off, but Eurozone officials always said that this is not an option and they may consider it at a later date.
Read the full report and analysis by the IMF below:
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