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First post-bailout IMF report on Greece: Economy improving; less taxes, key reforms needed

The IMF repeated its “less taxes, more reforms” mantra for Greece, in releasing its “country report” on Tuesday, the Fund’s first post-bailout scrutiny of the country amid the current “enhanced supervision” regime.

The report begins on a positive note, stressing that ” Greece has now entered a period of economic growth that puts it among the top performers in the eurozone. It must now persevere with efforts to address crisis legacies and pursue needed reforms to ensure continued success, says the IMF in its recent assessment of the country’s economy.”

The IMF also expresses its concern over the repercussions of pre-election promises and pledges, prominently uttered by the poll-Tsipras government, on the Greek economy’s competitiveness and on employment in the east Mediterranean country.

The report points to pressure on the budget from court decisions on retroactive returns of previous pension cuts and civil servants’ salaries. The Washington D.C.-based Fund, one of Greece’s stricter creditors during the bailout era, also said the banking sector in the country remains vulnerable.