## Greece: Second Post-Program Monitoring Discussions-Press Release; Staff Report; Staff Statement; and Statement by the Executive Director for Greece

_IMF Staff Country Reports, November 30, 2020_

## Source details

**Canonical URL:** [Greece: Second Post-Program Monitoring Discussions-Press Release; Staff Report; Staff Statement; and Statement by the Executive Director for Greece](https://www.imf.org/en/publications/cr/issues/2020/11/30/greece-second-post-program-monitoring-discussions-press-release-staff-report-staff-statement-49922)

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## Bibliographic details
- Published: November 30, 2020
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513562551.002

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### Summary of findings
- The pandemic interrupted a modest recovery.
- Following Greece’s early and strict containment measures, GDP contracted by 7.9 percent in 2020H1, slightly worse than the Euro Area (EA) unweighted average excluding Luxembourg.
- A further hit is expected in Q3, the peak of Greece’s tourism season.
- The fiscal response to the pandemic has been wellorganized and has mitigated its impact.
- Single Supervisory Mechanism (SSM) accommodation will delay the expected hit on banks, which were already vulnerable pre- COVID-19.
- In the context of the 2019 Article IV Consultation (November 2019), staff assessed that Greece’s public debt is sustainable over the medium-term but its long-term public debt sustainability is not assured under a realistic set of macro-fiscal assumptions.

### Economic impact and projections
- GDP contraction: 7.9 percent in 2020H1.
- Expectation of an additional negative impact in Q3 (peak tourism season).

### Fiscal and policy response
- The fiscal response to the pandemic is described as wellorganized and has mitigated the pandemic's impact.
- SSM accommodation is expected to delay the materialization of banking sector stress.

### Banking sector and financial stability
- Banks were already vulnerable pre- COVID-19.
- Anticipated delay in the expected hit on banks due to SSM accommodation.

### Public debt assessment
- Staff view from 2019 Article IV Consultation (November 2019):
  - Public debt is sustainable over the medium-term.
  - Long-term public debt sustainability is not assured under a realistic set of macro-fiscal assumptions.

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_Source: https://www.imf.org/en/publications/cr/issues/2020/11/30/greece-second-post-program-monitoring-discussions-press-release-staff-report-staff-statement-49922_