Greece: Staff Report on Request for Stand-By Arrangement
IMF Staff Country Reports, May 10, 2010
Source details
- Canonical URL
- Greece: Staff Report on Request for Stand-By Arrangement
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Bibliographic details
- Authors: Arrangement The Greek
- Published: May 10, 2010
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781455206896.002
Summary
- The Greek economy is teetering owing to heavy public debt and loss of market access.
- Greece is adopting an ambitious comprehensive multiyear adjustment program to:
- lower the fiscal deficit and the debt ratio,
- reduce domestic demand in line with capacity,
- increase supply and competitiveness so that the economy can step onto a higher growth path led by investments and exports.
- Greece needs a strong and sustained adjustment program to lower the fiscal deficit substantially and create the basis for a declining debt ratio.
Major findings and analysis
- Heavy public debt and loss of market access are central risks to the Greek economy.
- A comprehensive multiyear adjustment program is presented as the instrument to restore fiscal sustainability and competitiveness.
- The program emphasizes simultaneous fiscal consolidation (to lower the fiscal deficit and debt ratio) and structural reforms (to increase supply and competitiveness).
Policy recommendations and program objectives
- Implement a strong and sustained adjustment program to:
- substantially lower the fiscal deficit,
- create the basis for a declining debt ratio.
- Align domestic demand with productive capacity through demand-reducing measures.
- Foster a higher growth path led by investments and exports by increasing supply and competitiveness.
Content in this bundle
- Greece: Staff Report on Request for Stand-By Arrangement; IMF Country Report 10/110; May 5, 2010.