IMF claims Greek debt will soar to 293.6% GDP by 2060 without relief
The International Monetary Fund has proposed that the European Union extends Greece’s loan payments at least until 2040…
The International Monetary Fund has proposed that the European Union extends Greece’s loan payments at least until 2040, in its latest public debt sustainability report.
In the same report, the Fund also suggests a 17-year grace period for EFSF loans and a 6-year grace period of the ESM loans. The Fund also called for a 20-year grace period for the transnational loans Greece received in the first bailout agreement. The IMF also argues that European loans must be extended until 2080.
Should none of these proposals be taken into account and no debt relief is provided to Greece, then the IMF estimates that by 2060 the public debt will soar to 293.6% of the GDP.
Since there is a huge proportion of non-performing loans in Greece, the IMF estimates that it is rather likely for a new recapitalization being necessary. In total the IMF claims 20 billion euros will be needed, as originally noted in the third bailout agreement.