Greece pushed back against the International Monetary Fund’s view that the government’s economic reforms are heading off track, Bloomberg News reported. In official responses, published with an IMF report on Greece late Tuesday, Finance Minister Euclid Tsakalotos said the fund’s assessment was not based on recent evidence, while Bank of Greece governor Yannis Stournaras said it downplayed progress on the financial sector and was unduly pessimistic.
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A split between the euro area and the International Monetary Fund over Greece’s bailout deepened on Tuesday as one of Europe’s most senior policymakers and the country’s finance minister criticised the fund for being overly pessimistic about the country’s prospects. Jeroen Dijsselbloem, president of the eurogroup of finance ministers, said in an interview with the Netherlands’ RTLZ that a bleak IMF report on Greece released on Tuesday represented an “outdated” view of the Greek economy and “must be honest” in its assessments, the Financial Times reported.
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Greek government bonds are a relative sea of calm on Monday after last week’s “violent” moves, as officials in the International Monetary Fund prepare to discuss their participation in the country’s €86bn bailout later today. After renewed market jitters over Athens’ bailout compliance, Greece’s 10-year bond yields have fallen back from two-month highs this afternoon to around 7.4 per cent, the Financial Times reported. The sell-off has eased as the IMF’s executive board will meet to discuss their involvement in Greece’s three-year rescue agreed in the summer of 2015.
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In a related story, The Wall Street Journal reported that Greece is struggling under its austerity regime and new questions are mounting as to whether it can satisfy its bailout terms. Some people in high places know just whom to blame—a statistician in rural Maryland. Before Greece’s debt crisis, its governments manipulated statistics and masked the size of budget deficits, waste and patronage. The statistician, Andreas Georgiou, moved from the U.S. to become Greece’s first independent head of statistics in 2010.
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Greek farmers, many on tractors, have once again been blockading roads and border posts amid mounting signs that the country long at the epicentre of Europe’s debt woes is – once again – teetering towards crisis. Protesting farmers have been a regular feature of the social unrest that has sporadically gripped Greece, the Irish Times reported. It is now more than seven years since the Greek financial crisis erupted and the debt drama has often had a déjà vu quality about it.
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Investors are dumping Greek bonds, fearing that Athens will be unable to pay debt that comes due this summer, The Wall Street Journal reported. The selloff comes as the Greek government is again at a standstill in negotiations with its creditors in the eurozone and at the International Monetary Fund. Athens needs to break the deadlock and secure more aid before about €6 billion ($6.5 billion) in debt has to be repaid in July.
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Greece will only receive more loans from the euro zone if the International Monetary Fund joins its latest aid programme, the head of the bloc's bailout fund said on Monday, spelling out a condition thus far disregarded by Athens's creditors, the International New York Times reported on a Reuters story. Greece needs a new tranche of financial aid under its 86 billion euro bailout by the third quarter of the year or it faces the risk of defaulting on its debts.
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Greece’s public debt and financing needs will prove “explosive” in decades to come unless Europe overhauls its bailout program to ease the load, the International Monetary Fund says in a draft report as the country seeks a fresh loan payout, Bloomberg News reported. In a baseline scenario, Greece’s government debt will reach 275 percent of its gross domestic product by 2060, at which time its gross financing needs will represent 62 percent of GDP, the IMF says in the report obtained by Bloomberg. The government estimates public debt around 180 percent of GDP at present.
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Two historic Greek newspapers, including the country’s best-selling daily, will cease publication, the debt-ridden Lambrakis Press Group announced on Saturday. “To Vima weekly and Ta Nea daily are forced to cease their publication within days due to financial reasons,” the company said in a statement, The Guardian reported. Lambrakis Press Group (DOL) “is lacking any available resources and as a result it can’t support the printing of its newspapers and, of course, can’t ensure the unhampered operation of the other media outlets it owns,” it added.
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Greece hopes stronger than expected public accounts in 2016 will convince its lenders to sign off on a bailout review without demanding more austerity, government officials said on Thursday, the International New York Times reported. After meeting his euro zone counterparts in Brussels, Finance Minister Euclid Tsakalotos said that last year's primary surplus - which excludes debt servicing costs - reached 2 percent of gross domestic product, beating a target of 0.5 percent of GDP set in its bailout plan.
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