The Greek government is due to resume negotiations with the institutions in Athens on Tuesday, when pension reform is expected to be one of the most prominent and sensitive issues that will be discussed.
The Development Ministry has tabled for public consultation until March 3 the draft law on the out-of-court workout, which is one of the key deliverables of the second programme review and also relates to the non-performing loan (NPL) resolution.
Discussions between the institutions and Greece, which are due to resume in Athens next week, will, among other issues, focus on plans to reduce the tax-free threshold for personal incomes.
The issue of Greece’s exceptionally high tax and social security debt is discussed in an International Monetary Fund paper published with the release of the Article IV consultation and ex-post evaluation earlier this week.
One of the issues discussed in a recent International Monetary Fund paper deals with the Greek pension system and notes that the most recent reform goes in the right direction since it removes some distortions and reduces the overall pension cost.
Following the International Monetary Fund’s executive board meeting on Monday, the Washington-based organisation published its ex-post evaluation report on Tuesday evening.
The Article IV consultation report on Greece published by the International Monetary Fund on Tuesday evening included letters by the Greek Finance Minister Euclid Tsakalotos and Bank of Greece governor Yannis Stournaras, which both outlined their disagreement on certain assumptions and comments in IMF’s debt sustainability analysis (DSA) and ex-post evaluation report.
The International Monetary Fund's updated Debt Sustainability Analysis (DSA) sees Greek debt as being highly unsustainable and stresses that even with the full implementation of the policies included in the third eurozone bailout programme, both debt and financing needs will become explosive in the long-run.
Despite the significant progress made so far, Greece faces fundamental challenges such as vulnerable public finances, notable tax evasion and ineffective tax administration, impaired bank balances sheets and pervasive structural obstacles to investment and growth, the International Monetary Fund’s Article IV consultation report concludes.
The International Monetary Fund’s executive board convened on Monday evening to discuss the Article IV consultation on Greece.