The International Monetary Fund (IMF) is reportedly tacking on more conditions in order to participate in the ongoing, and now sputtering, third Greek bailout program, according to Athens daily “Kathimerni”, which cited what it calls a confidential report compiled by the Fund.
The IMF, the mass media outlet reports in quoting the 38-page report, wants commitments towards debt relief based on what it calls a “realistic” medium-term goal for achieving primary budget surplus targets by the Greek state after 2019. The current program ends in August 2018.
The IMF has made well-publicized demands for the embattled leftist Greek government to lower the tax-free annual income threshold in the country (roughly 8,500 euros) in order to expand an extremely narrow tax base — compared to other European countries. It has also called for a further liberalization of the still state-dominated energy sector and looser labor market regulations. The IMF also wants banking sector reforms to tackle a huge mountain of non-performing loans and exposures (NPLs and NPEs) strangling the credit sector in the recession-plagued country, as well as reform of Greece’s antiquated bankruptcy code and the replacement of bank board of directors.
The report will ostensibly be presented along with a recently completed — but not publicized — report on the sustainability of the Greek debt, at a regularly scheduled IMF board of directors’ meeting on Feb. 6.
Nevertheless, press leaks last week said the report’s findings showed that the Greek debt in its present form was completely unsustainable.
The highlight of the report’s findings is standing and heightened skepticism over Greek state finances being able to achieve “historical records” in terms of annual primary budget surpluses of 3.5 to 4.5 percent of GDP.
