Tuesday October 21, 2014 Search
Weather | Athens
24o C
11o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Praise and warnings in IMF report

 Fund concerned about reform fatigue, insists on extending measures, puts unpopular issues on the table

The fiscal adjustment achieved by Greece constitutes an impressive feat without global precedent and is tangible evidence of the government’s resolve, the International Monetary Fund says in its report that caps the fifth assessment of the country’s program. However the Washington-based Fund also expressed concern over reform fatigue, and estimated that the political commitment to a strategy of debt reduction will be seriously tested in the coming months.

The report, issued on Tuesday after a long wait and negotiations between the IMF and Athens, estimated that there will be a fiscal gap of 2 billion euros in 2015 and 1.7 billion in 2016, which should be covered by measures so that the budget can achieve primary surpluses of 3 percent and 4.5 percent respectively.

The IMF made no secret of its displeasure with last week’s forced resignation of the general secretary for public revenues, Haris Theoharis, pointing to government reluctance to support the autonomous secretariat.

On the banks front, the report said the country’s four systemic lenders will likely need additional capital to handle the rise in bad loans and to contribute toward the country’s economic recovery. The report noted that Greece cannot afford to wait for the economy to grow before it deals with the loan bubble, as it has one of the world’s biggest nonperforming loan rates.

The revised bailout agreement attached to the report provides for the abolition of the low value-added tax rates – mostly applying to cultural commodities and food – the annulment of unfair tax exemptions and the extension of the solidarity levy. It also opens the way toward tax rate reductions in the top brackets provided that state revenues continue to beat their targets. All changes to the tax system will be discussed this fall.

Meanwhile the creditors are considering changes to the Greek social security system, the abolition of limits on group dismissals, a new salary system for the public sector and the creation of a permanent mechanism for the departure of civil servants who fail assessment tests, although, as the International Monetary Fund says in its report that caps the fifth’s report explicitly stated, the latter is forbidden by the Greek Constitution for now.

ekathimerini.com , Tuesday June 10, 2014 (22:19)  
Think-tank says political uncertainty slowing investment in Greece
Tax debts to Greek state exceed 70 billion euros
Greek 2013 budget gap revised down to 1.8 pct/GDP
Greece said to seek tailor-made plan for bailout exit
Greek farmers warn they´re warming up for protests
Greek farmers are warming up for extended protest action, representatives of their unions warned on Tuesday after meeting in Larissa, central Greece, over the weekend. Farmers, who are compl...
Accomplice of Greece´s Number 1 fugitive arrested while trying to leave country
Self-styled anarchist Polykarpos Georgiadis, linked to Greece's Number 1 fugitive, was arrested at Athens International Airport on Tuesday while trying to board a flight to Brussels, in viol...
Inside News
BASKETBALL
PAOK fans stop coach Markopoulos´s move to Olympiakos
Olympiakos is once again in the lookout for a new coach after the refusal of PAOK to release Soulis Markopoulos, while Panathinaikos defeated Kolossos on Rhodes on Monday to become the only ...
BASKETBALL
Reds lose to Nea Kifissia, search for new coach
Nea Kifissia recorded the biggest win of its short history in the top flight defeating Olympiakos 68-67 on Sunday, in a Basket League weekend marred by the abandonment of the Thessaloniki de...
Inside Sports
INTERVIEW
The past, present and future of the Greek debt crisis
For a decade, until mid-2012, Josef Ackermann was the CEO at Deutsche Bank. It was a position that earned him the nickname “shadow chancellor” of Germany and allowed him to play a decisive r...
COMMENTARY
Self-opposing coalition
Even though a number of polls see the total percentage of the two ruling parties trailing that of SYRIZA, New Democracy and PASOK are still in government and the leftists in opposition. This...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Greek farmers warn they´re warming up for protests
2. Accomplice of Greece´s Number 1 fugitive arrested while trying to leave country
3. Think-tank says political uncertainty slowing investment in Greece
4. Trial over 2012 torture of Egyptian bakery worker in Salamina begins
5. Tax debts to Greek state exceed 70 billion euros
6. Greek 2013 budget gap revised down to 1.8 pct/GDP
more news
Today
This Week
1. The past, present and future of the Greek debt crisis
2. Gang importing heroin into Greece busted
3. Gutsy rectors
4. Self-opposing coalition
5. SDOE to probe Proton Bank loan to Thessaloniki businessman
6. Applications for heating oil subsidy set to start
Today
This Week
1. Possible third figure in Amphipolis mosaic may be uncovered shortly
2. Greece to contribute 1 mln towards Gaza reconstruction
3. Greece nearing bailout exit, says gov't spokesperson after IMF talks
4. Istanbul skyscraper casts shadow over Greece's banking ambitions
5. Coalition shooting itself in the foot
6. GPO poll gives SYRIZA clear lead over New Democracy
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.