The data of the International Monetary Fund – IMF indicate that Greece’s financial situation is worse than anticipated, and the inability to achieve its own targets concerns the IMF who is pushing in the direction of Greek debt relief.
Based on an IMF study, the German conservative newspaper Die Welt predicts a budget surplus of 1.1 % of GDP (Gross Domestic Product) for 2014 instead of the expected 1.5%.
Die Welt also observes that a -0.4% means an even bigger deficit in the Greek budget and tax revenues will be lower. Athens is therefore obligated to either make larger cuts with known adverse effects for the economy, or to borrow more money from the Europeans.
In this way, total volume of debt will be increased in conjunction with the fiscal deficit-one of the key criteria for the continuation of support programs in Greece.
According to the latest news, the country emerges very slowly from its difficult situation referring once again to Greek weaknesses such as growth,the stationary privatization sector, and failure to collect taxes.
It was established that the Die Welt considers it impossible to achieve these goals within a period of one or three years because of difficulties that will be encountered with the restructuring of state institutions. They claimed that this is partly due to the fact that the political elite of the country, required to implement the reforms, are responsible for the misery of the Greeks.
On the other hand IMF data have a good excuse for not mowing Greek debt in the form of reduced interest rates, and the extension of loans in a partial waiver of repayment.
Europeans support Greece renegotiating the possibility of debt relief, but there is a loophole. The agreement predicts that if Athens satisfies all the conditions, renegotiation will take place.
The Die Welt admits that this progress does not satisfy IMF. Funding experts are referring to the fact that the burden of Greek debt is so stifling, it could choke the country if lenders do not waive some of their claims. However European lenders fear the political opposition in their countries.
In addition, the publication concludes with the idea of extending the repayment period of loans to 50 years, which was recently brought up. However, the new elements of IMF are not consistent with the requirements of lenders.