Greece: Request for Extended Arrangement Under the Extended Fund Facility: Staff Report; Staff Supplement; Press Release on the Executive Board Discussion; and Statement by the Executive Director for Greece.
IMF Staff Country Reports, March 16, 2012
Source details
- Canonical URL
- Greece: Request for Extended Arrangement Under the Extended Fund Facility: Staff Report; Staff Supplement; Press Release on the Executive Board Discussion; and Statement by the Executive Director for Greece.
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Bibliographic details
- Published: March 16, 2012
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781475502442.002
Overview
- This paper presents the staff report for Greece’s request for an Extended Arrangement under the Extended Fund Facility.
- The Greek economy fell into deep twin structural deficits after euro adoption.
- Easy access to financing at low interest rates fuelled rapid borrowing by the private and public sectors.
Key findings and macrofinancial developments
- Between euro accession in 2001 and 2009, private sector credit almost doubled in percent of GDP, financed mainly through the domestic banking system.
- Massive sovereign borrowing from international bond markets pushed government debt from 100 percent of GDP to about 130 percent of GDP during this timeframe.
Policy context and purpose
- The document supports Greece’s request for an Extended Arrangement under the Extended Fund Facility, reflecting IMF engagement to address the macroeconomic imbalances and financing strains described above.
Subject coverage
- Banking
- External debt
- Labor
- Public debt
- Public financial management (PFM)
- Revenue administration
- Wages
Source: Greece: Request for Extended Arrangement Under the Extended Fund Facility: Staff Report; Staff Supplement; Press Release on the Executive Board Discussion; and Statement by the Executive Director for Greece. March 16, 2012.