Greek economy shows signs of recovery

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Greece’s creditors are returning to Athens on for a fourth post-bailout evaluation to review whether Prime Minister Kyriakos Mitsotakis’ planned tax cuts will affect Greece’s economic results.

A key factor to Mitsotakis’ plans to lead his Greece’s economy to a viable growth path, is attracting investors.

The fact that bond rates are at historic lows suggests that the tide has taken a major turn in Greece’s favour.

But investments need bank financing and it’s not certain that the Greek banking system is in a position to do so, with non-performing loans amounting to €80 million. This number lies significantly lower than the March 2016 peak of €107m, but is still high,

Clearing the arrears stock of 1.4 billion euros is another challenge for the Greek economy. The third post-bailout review brands Greece’s progress to that end “disappointing”, especially since old debts to the private sector are not being cleared fast enough, while new ones are being created.

The Greek government wants to wrap up the evaluation before the end of November and then go to the December Eurogroup meeting with no loose ends. The objective there will be to negotiate and eventually strike a deal on counting revenue from Greek state bonds withheld by central banks within their Public Investment Programme, thus implicitly reducing the agreed-upon primary surplus.

 

Via Euronews

 

 

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