Greece’s economy has deteriorated so severely in the last three months that international lenders would have to find €252bn in bail-out loans through the end of the decade unless Greek bondholders are forced to accept severe cuts in their debt repayments.Is it any wonder the Germans aren't too happy about writing a blank check. Double your fun in just 3 months. What will a year bring?
The dire analysis, contained in a “strictly confidential” report by international lenders and obtained by the Financial Times, is more than double the €109bn in European Union and International Monetary Fund aid agreed just three months ago.
Why anyone would ever lend money to Greece is beyond me. Why they were ever let into the Eurozone is an even bigger mystery. (Budgetary shortfalls were to be no more than 3% of GDP. Greece saw deficits nearly twice that large even in good times.)
And although they just voted for more austerity measures, they haven't managed to implement the last batch they voted on.
The deterioration in Greece’s financial situation described in the troika’s debt analysis report is deep and across the board, and Greece is likely to be forced to rely on bail-out loans to finance its operations through at least 2021.It is easy to say whatever you want to say. Actually doing things is a bit harder.
The much-touted Greek privatisation programme, which was expected to bring as much as €66bn in cash to help pay down debt, is now expected to bring in €20bn less, and lenders are now assuming that the Greek government will continue to lag in implementing repeatedly-promised austerity measures.