Deputy FinMin Staikouras admits: “Greek debt is not sustainable”

Posted by in Economy

SSSS-U-rrr-P-R-I-S-E! Greek deputy finance minister Christos Staikouras admitted that “the Greek debt is not sustainable and its relief will require negotiation.” In an interview to weekly Parapolitika, Staikouras said:

“The public debt has been gaining strong increasing dynamics, whether in absolute levels or in relation to GDP, the debt is high. It is true that the strong increasing dynamics has its roots in the 1980’s.

It is also true that during the decades that followed the annual growth rate decreased but a radical halt of this dynamics did not take place.”

Christos Staikouras expressed the hope that the government will be able to negotiate with partners and lenders the easing of the debt. (Parapolitika via news247.gr)

Staikouras’ sincere and open acknowledgement about the sustainability of the Greek debt comes as a surprise … Especially for Finance Minister Yiannis Stournaras who recently claimed that ‘if we have hope the Greek program will succeed.” Staikouras statement must also be a surprise for prime minister Antonis Samaras and his success story campaign.

Christos Staikouras is a member of Samaras’ Nea Dimocratia.

* the 1980s was the socialist PASOK ruling decade.

PS meanwhile mean Greeks are awaiting for a ‘correction statement’ to be issued by Staikouras’ office saying ‘the ministers’ statement was misunderstood…”

 

 

 

did not reach a radical opposition of this dynamic, “says Mr. Staikouras and expresses the hope that the government will be able to negotiate with partners and lenders to ease debt .

“Το δημόσιο χρέος εδώ και δεκαετίες είχε αποκτήσει ισχυρή αυξητική δυναμική και τόσο ως απόλυτο, όσο και ως σχετικό ως προς το ΑΕΠ μέγεθος, είναι υψηλό. Είναι αλήθεια ότι η ισχυρή αυξητική δυναμική έχει τις ρίζες της στη δεκαετία του 1980.

Είναι επίσης αλήθεια ότι κατά τις δεκαετίες που ακολούθησαν ο ετήσιος ρυθμός ανόδου μειώθηκε αλλά δεν επετεύχθη ριζική ανακοπή αυτής της δυναμικής”, δηλώνει ο κ. Σταϊκούρας και εκφράζει την ελπίδα ότι η κυβέρνηση θα μπορέσει να διαπραγματευθεί με τους εταίρους και δανειστές την ελάφρυνση του δημοσίου χρέους.