Bloomberg: Commission reports expresses serious reservations over Greek debt sustainability

Tuesday, 20 June 2017 19:35
UPD:19:52
REUTERS/TONY GENTILE

The report ostensibly forecasts that Greece's partners will need to implement medium-term debt relief measures in even the best-case scenario, while calculating that the country's financing needs to service its debt will remain high and exceed the 20-percent GDP threshold - even after 2045.
 

A report by the European Commission's economic and financial affairs council expresses serious reservations about the long-term sustainability of the Greek debt, according to a dispatch on Monday afternoon circulated by Bloomberg.

The report ostensibly forecasts that Greece's partners will need to implement medium-term debt relief measures in even the best-case scenario, while calculating that the country's financing needs to service its debt will remain high and exceed the 20-percent GDP threshold - even after 2045.

The ominous scenario that Bloomberg attributes to the Commission's analysts also foresees that the debt will acquire an "explosive dynamic" as the years pass.

Moreover, Bloomberg adds that a coming loan tranche worth 8.5 billion euros will only last until October 2017, given that loan maturities exceeding seven billion euros will have to be covered in July 2017 alone.

Finally, creditors estimate that 27.4 billion of the 86 billion euros of the total third memorandum's credit line will remain untouched, according to Bloomberg, which cited the same Commission report.

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