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Showing posts with label World Economic. Show all posts
Showing posts with label World Economic. Show all posts

Greece need More Euro - IMF

"There is a gap according to our preliminary projections for 2015-2016" of up to "€9.5bn," Poul Thomsen, the IMF's mission chief for Greece, told a conference call.

The EU and IMF have committed a total of €240bn in rescue loans to Greece since 2010, but with its economy entering a sixth year of recession it is still having trouble making budget ends meet, AFP reported.
"The IMF's policy is that the programme needs to be fully financed for the 12 months ahead... What is key is that the Europeans know there is a gap and they'll have to fill it," he said.

Meanwhile, an IMF report into Greece has concluded that "the rich and self-employed have continued to evade taxes on an astonishing scale and bloated and unproductive state sectors have seen only limited cuts".
"Moreover, labour has shouldered too much of the burden as lower wages have not resulted in lower prices, because of failure to liberalize closed professions and dismantle barriers to competition. While the economy is now re-balancing apace, this is happening mainly through recessionary channels, rather than through productivity boosting reforms. Meanwhile, the mounting sense of social unfairness is undermining support for the program," the report added.

Euro zone downgrades


Euro economic problem hike money market Stocks dropped on Friday, snapping a four-day winning streak, after news reports that Standard & Poor's would downgrade credit ratings on several euro-zone countries.
The ratings agency was reportedly set to downgrade euro-zone countries, including France and Austria, but leave the ratings of Germany and the Netherlands unchanged. French Finance Minister Francois Baroin said the country has been notified of a one-notch cut.
"This is going to destabilize a lot of those funding packages because they are all based on the AAA rating, and now you are going to have AA+ for France and Austria, and maybe down two notches for Italy," said Alan Valdes, director of floor operations for DME Securities in New York.
 
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