Greece: First Review Under the Stand-By Arrangement
IMF Staff Country Reports, September 14, 2010
Source details
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- Greece: First Review Under the Stand-By Arrangement
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Bibliographic details
- Authors: Arrangement The
- Published: September 14, 2010
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781455206926.002
Summary
- The recession is unfolding in line with expectations.
- Inflation is higher than expected from indirect tax hikes.
- Key challenges: restoring fiscal sustainability, safeguarding financial sector stability, and boosting competitiveness—and hence growth and employment.
- Staff and authorities agreed that nominal growth will be somewhat higher than originally anticipated.
- The government will facilitate private investment including through the privatization program.
- Stronger public financial management and especially tax administration are needed to mitigate risks.
- Advancing tax administration reform is a crucial priority to limit risks.
Macroeconomic outlook
- Recession trajectory: unfolding in line with expectations.
- Inflation: higher than expected due to indirect tax hikes.
- Nominal growth: staff and authorities expect nominal growth to be somewhat higher than originally anticipated.
Fiscal sustainability and public financial management
- Principal objective: restoring fiscal sustainability.
- Public financial management (PFM): stronger PFM is needed to mitigate risks.
- Tax administration: advancing tax administration reform is a crucial priority to limit risks.
- Pension spending, state budget, budget planning and preparation, and tax arrears collection are highlighted as relevant fiscal areas.
Financial sector stability
- Principal objective: safeguarding financial sector stability.
- Relevant subjects: Banking, Credit, Money, ECB mission, IMF mission, IMF staff calculation, ISCR.
Competitiveness, growth, and employment
- Principal objective: boosting competitiveness to support growth and employment.
- Private investment: government will facilitate private investment including through the privatization program.
Policy recommendations and priorities
- Restore fiscal sustainability through strengthened public financial management.
- Advance tax administration reform as a crucial priority to limit risks.
- Safeguard financial sector stability through appropriate measures.
- Facilitate private investment, including via the privatization program, to support competitiveness, growth, and employment.
Content in this bundle
- Greece: First Review Under the Stand-By Arrangement; IMF Country Report 10/286; August 26, 2010