Bloomberg News

Greek Debt Dynamics Remain ‘Worrying,’ Troika Draft Shows

October 20, 2011

Oct. 20 (Bloomberg) -- Greece’s debt ratio, which exceeded 140 percent of GDP at the end of 2010, will remain “at very high levels for many years,” leaving it “vulnerable to adverse shocks,” according to a draft report by the European Commission, the European Central Bank and the International Monetary Fund, a group known as the troika.

“Greek debt dynamics remain extremely worrying,” the troika said. “If fiscal consolidation and privatization targets are respected, and growth responds to structural reforms, the debt ratio may start declining from 2013 onwards.”

“When compared with the outlook of a few months ago, the debt sustainability has effectively deteriorated, given delays in the recovery, in fiscal consolidation and in the privatization plan, as well as the perspective of bank recapitalizations.”

To contact the editor responsible for this story: Angela Cullen at acullen8@bloomberg.net


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