BUSINESS

Bruegel economist says Greece may need fourth bailout

TAGS: Economy

Greece will probably need a fourth bailout as it will be unable to borrow from international markets in 2018, according to Zsolt Darvas, a senior economist at the Bruegel Institute, a European think tank specializing in economics.

Speaking at the Thessaloniki Summit, he said that in 2018 “Greece will not be able to borrow from the markets.”

“Therefore there will be a fourth financial assistance program,” he added, clarifying that “this does not mean that I agree with that.”

Darvas said he did not know which government would negotiate the deal, but insisted that it must include a substantial haircut of Greece’s debt (by two-thirds) in order to allow it to borrow from international markets. He predicted growth prospects for the economy in the medium term, while referring to the country’s difficulties in collecting taxes.

The Thessaloniki Summit is being attended by a group of prominent regional and international experts and policymakers from around the world.
 

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