A confidential IMF report: Greece needs much more assistance – Onet.pl

Greece, due to the disastrous effects of capital controls and the closing of banks, need much more assistance and debt reduction than predicted its European partners – according to a confidential IMF report, by Reuters.

 
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  The confidential report of the IMF: Greece needs much more help
 
 
 

The document, which was sent to Euro area governments, it follows that the introduction of more than two weeks ago control of capital flows and the closure of banks had “a devastating impact on the economy” in Greece.

International Monetary Fund report provides an updated analysis of the Greek debt repayment. A similar analysis of the IMF announced at the beginning of July.

Fund announced then that Greece would need to extend the aid package from the European Union and possibly debt reduction. The IMF also revised downward if the economic growth forecasts of Greece in 2015 – from 2.5 percent. to 0 percent.

However, since then there has been a “dramatic deterioration of the Greek debt repayment, which indicates the need its reduction on a scale that far exceeds what has so far been considered and as proposed by the European Stability Mechanism (ESM) “- says the latest report.

IMF recommends so European partners of Greece deferral of its debt for a period of 30 years, which also would include new loans and radical extension of the deadline for repayment, or simply financial support of Greece. Otherwise, the euro area should agree in advance on a “significant reduction” of Greek debt – the IMF recommended.

(gz)