Greece most likely will not be able to borrow from international markets in 2018 and will need a fourth bailout, argues Bruegel Institute economist Zsolt Darvas.
“In 2018, Greece will not be able to borrow from the markets, therefore there will be a fourth financial assistance program. This does not mean that I agree with that,” said the Hungarian economist speaking during the “Thessaloniki Summit.” However, he added, the GDP growth will guarantee that the country will not need a large bailout loan at the time.
“I am more optimistic about the immediate future for Greece,” Darvas said, acknowledging that the country has made great efforts to reform. Indeed, he said, Athens has so far implemented 80-90% of the required measures and reforms.
Referring to the issue of Greek debt, Darvas said that it is not good that about 80% of it is in the hands of official creditors because this is a major obstacle to attracting foreign investors in Greece. Finally, he noted that the possibility of Greek debt relief is directly linked to the German elections.
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