Troika: Greek report

Some of the highlights from the Troika report on a review of the Greek aid program.

• Greece has made progress on reducing its imbalances.
• After an initial strong start, reform implementations have come to a standstill.
• Continue to see political risks, and administration capacity issues.
• Re-invigoration needed to prevent unsustainable deficit.
• Greek recession deeper and longer than projected.
• Greek GDP seen -3.8% this year and growth for 2012.
• Sees net borrowing at 10.1% in 2011 and at 8% in 2012.
• Sees net borrowing at 3.4% of GDP in 2014
• Sees net debt at +140.5% in 2011 and +144.3% in 2012.
• Greek Tax collection continues to under-perform.
• Additional deficit measures amount to +3% of GDP
• Next aid disbursement cannot take place before financing resolved.
• Greece will not be able to return to markets in 2012.
• Cost of market financing remains prohibitive.

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