Greek authorities may need another ransom of 50 billion euros

Greek authorities may need another ransom of 50 billion euros

  • According to the sustainability report of its debt cited by the Financial Times .
  • The report of the Troika indicates that the financing needs of Greece during the second rescue, would amount to 170,000 million.
  • In principle 130,000 million euros were planned, plus 100,000 million from the cancellation of half of the debt.
  • Greece is optimistic about the withdrawal of its debt and the reception of the ‘second rescue’.
The Greek flag flies next to that of the European Union in front of the Parthenon temple of the Acropolis of Athens. Simela Pantzartzi / EFE

Greece may need additional aid of 50 billion euros between 2015 and 2020 , after the second bailout of the Hellenic country is over, according to the Greek debt sustainability report cited by the Financial Times.

Countries such as Germany, the Netherlands and Finland have reacted harshly after receiving the document

The 10-page report indicates that the rescue program has been derailed and suggests that Greece may need another rescue once the second one is finished in 2014, the newspaper said.

 

In addition, the troika document – the International Monetary Fund and the European Central Bank – states that Greece’s financing needs during the second bailout , which ends in 2014, would amount to 170 billion euros if no additional measures are taken to reduce your debt.

In principle 130,000 million euros were planned , plus 100,000 million from the forgiveness of half of the debt by private creditors, to reduce along with the adjustment program the Greek debt from 160% of GDP to 120% by 2020 , but the “troika” report points to 129% or worse if no measures are taken to correct the deviation.

Given that there are some 34,000 million euros of the first rescue , the help to reach 170,000 million would amount to 136,000 million euros.

Downward scenario

The report is also based on a downward scenario to suggest that Greek debt could fall more slowly than expected , to only 160% of GDP in 2020, well above the 120% set by international partners.

The troika warns that Greca may not be able to meet on time

In that case, Greece would need about 245,000 million euros in aid , explains the Financial Times , which stresses that the report reveals why countries such as Germany, Holland and Finland have reacted with such harshness after receiving the document last week and the grim outlook that draws this one

The troika warns that the Greek authorities may not be able to comply with structural reforms and adjustments at the expected pace under the base scenario.

The report points out that greater wage flexibility could meet the resistance of economic agents, the liberalization of markets for services and products could suffer from a strong opposition from parties with interests and reforms to improve the business climate could also be delayed by bureaucratic delays.

The document explains in detail the reason for the derailment of the Greek program.

The Financial Times explains that the recapitalization of the Greek bank , which would have cost 30,000 million euros, would now stand at 50,000 million with the calculations of the “troika”, and the privatization plan, which initially had to contribute 50,000 million euros, it will be delayed for five years and will only add 30,000 million at the end of the decade.

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