ECONOMY

IMF warns of risks for the Greek credit system

imf-warns-of-risks-for-the-greek-credit-system

The International Monetary Fund discerns risks in Greece’s credit system, according to the post-bailout surveillance report discussed at Wednesday’s Executive Board meeting, Kathimerini understands. The report is expected to be published on Thursday.

This is an issue that the Fund has consistently referred to as it considers it of prime significance for the Greek economy. This time sources say the IMF does not directly raise the issue of recapitalization, as it has done in the past, but identifies serious dangers due to the high volume of nonperforming loans.

The Fund is also unhappy with the proposals for the reduction of bad loans and the protection of borrowers’ primary residences that the government is discussing with the European institutions.

The publication of the IMF report four days before Monday’s Eurogroup meeting – which will decide on measures that would benefit Greece by about 1 billion euros – will undoubtedly raise some uncertainty over the Greek economy, which Athens had been hoping to avoid with the issue of the 10-year bond on Tuesday.