Greece: Request for Stand-By Arrangement
IMF Staff Country Reports, May 12, 2010
Source details
- Canonical URL
- Greece: Request for Stand-By Arrangement
Other formats
Bibliographic details
- Authors: Arrangement Greek
- Published: May 12, 2010
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781455206902.002
Economic overview
- Greek real GDP has declined by 2 percent in 2009.
- Indicators suggest that activity will weaken further in 2010.
- The economy needs a strong and sustained adjustment program to correct fiscal imbalances and place debt on a downward path in the medium term.
Fiscal and market developments
- Deteriorating fiscal results led to downgrades of government bonds by rating agencies.
- Investors started backing out of Greek bonds, driving up their yields.
- Public debt dynamics are a key concern requiring medium-term correction.
Financial sector pressures
- Impaired loans are rising.
- Borrowing costs in the interbank and wholesale markets have increased.
- Increased costs and rising impaired loans are putting pressure on bank profitability.
Policy implications and program requirements
- A strong and sustained adjustment program is needed to:
- Correct fiscal imbalances.
- Place public debt on a downward path in the medium term.
Content in this bundle
- Greece: Request for Stand-By Arrangement; IMF Country Report 10/111; May 5, 2010.