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Ex BoG governor: “IMF warned in 2008, Greece’s long-term debt would soar to 800% of GDP”

Former Governor of the Bank of Greece Giorgos Provopoulos revealed that the in May 2008, the head of the IMF’s mission to Greece Bob Traa had estimated that Greece’s debts were over 800% of the GDP.

Speaking at the annual meeting of the Federation of Hellenic Food Industries (SEVT), Provopoulos said that:

Bob Traa had warned in a report as early as in 2008 that Greece’s long-term debt would soar to 800 percent of the country’s gross domestic product, as the actuarial debt of the social security funds would amount to 400 percent of GDP.

“We requested that he does not publish it,’ Provopoulos added.

The former central banker was highly critical and dismissive of the fiscal policy that was implemented at the start of the crisis. Mr. Provopoulos was also doubtful as to whether Greece will exit the crisis, likening the situation to “being stuck in a minefield”.

Finally Mr. Provopoulos criticized the policy of constant tax hikes, underlining that “taxes will not bring growth, but rather lead the economy to a vicious cycle”. (sources: ekathimeriniTo Vima)

He did not reveal who give the “orders” to not publish the warning.

Erhm… let me think. Which party was in power in 2008? Ops! New Democracy.

PS Tell me again: Why do officials play dirty when in office but they mean they have to reveal bitter truths much much later, when not in office anymore? And why aren’t they free of accountability?

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