Greece: Debt Write-down of 30% required by the IMF – Tsipras (NY2) – Dagens Industri

Greece: Debt Write-down of 30% required by the IMF – Tsipras (NY2)

                  2015-07-03 16:05
             

 (Adds paragraph 7-8, writes of paragraph 6 and 9)       (SIX) Greek Prime Minister Alexis Tsipras continues its  communication with citizens on Twitter:       "According to the IMF is the only way to make Greece's debt situation  Sustainable a 30 percent write-down and a 20-year payment period "  writes Tsipras.       "The institutions never showed this report for the five months  as we negotiated, "he writes on.       What Tsipras aims to be section D of the report that tests how  robust assumptions for the different outcomes of growth and  budget surpluses.       If the growth rate will not be higher than 1 percent per year, and a primary  budget surplus of 3 percent can not be reached, but instead becomes 2.5  percent, as required, according to the IMF, something like that Tsipras  writes.       "A lower primary budget surpluses in the medium term of 2.5 percent  of GDP and lower real GDP growth of 1 percent per year would not  only  require additional funding until 2020, but also a  doubling of payment periods and the maturities of the existing  debt stock but also a significant write-down of debt, to  such that the entire outstanding GLF facility (53.1 billion euros)  or similar "writes the IMF on page 15 of the report.       In the section mentioned thus not figure 30 percent. The  occurs at a different place in the report, in section B which is about  the baseline scenario, item 6 on page 10th       "If the thresholds agreed in November 2012 is used,  need a debt reduction of 30 percent in order to meet debt targets  November 2012. The level of debt would still be very high,  any further decrease in growth or in primary  budget surpluses over the medium term would result in significant  increases in debt levels and financing needs, "writes the IMF.       What part of the report Tsipras referring to is therefore a bit unclear.  It is clear that the IMF does not analyze a scenario,  but several, and that  these are different robust for negative surprises in growth  budget surpluses.       Read the full IMF report: http://on.ft.com/1KxEY4R    Andreas Johansson, tel +46 31 350 6483  mailto: andreas.johansson@six-group.se  www.blogg.six.seSIXNews  SIX News