Greece faces what is likely to be an explosive surge in its public debt levels that within decades will mean it will owe almost three times the countrys annual economic output unless given significant debt relief, the International Monetary Fund has warned in a confidential report.
The new report was prepared by IMF staff ahead of a February 6 board meeting to discuss the funds participation in an EU-led 86bn bailout of Greece and signals the continuing hard line the IMF is taking on debt relief for Athens. It offers a bleaker view of Greeces economic dilemmas than an analysis prepared last year, warning that the debt load is highly unsustainable and would not improve even if it implemented further reforms recommended by the fun…
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