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IMF on Greece: new austerity measures €6.7 billion, new “haircut”

International Monetary Fund wants new austerity measures worth 6.7 billion euro from Greece and thus until 2016. The IMF sees no primary surplus to be achieved for 2013 and furthermore that additional debt restructuring (haircut) will be requited..

According to IMF’s “Fiscal Monitor” report published on Wednesday,

  • Greece is expected to achieve a zero primary balance in 2013 ,” despite the fact that the draft budget for 2014 predict a surplus of 344 million euros.
  • additional adjustment by 2016 will require additional measures , including gains from the tax administration , equal to 3.5% of GDP .”
  • projections for public debt require an additional haircut (OSI) to reduce the ratio of debt to GDP to 124% by 2020.
  • measures of 2.9 billion euro will be adopted in 2014.

Full Fiscal Monitor October 2013 here

PS I wonder how EU in general and Germany in particular on one side and the IMF on the opposite side will solve their dispute on new Greek haircut.

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