THE GOVERNMENT AND WELL … got his first green light from the IMF …

    NYTimes: 365/360 – 2009 Politics
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    (Title) positive test was the first of which came the Greek economy, the troika, they said yesterday at a press representatives, who stressed that “the program goes under the plan and measures are implemented as agreed ».
    Both the state budget and on structural measures and insurance reform, welcomed the progress made and left to indicate a concern only for the sizes of the General Government (hospitals, pension funds, Local Authorities) but also for soaring inflation.
    It was obvious that the three heads of delegation, Mr P. Thomsen of the IMF, S. Nterouz the European Commission and K. Mazouch the European Central Bank, came determined to support the government effort. They said that even for a tough time passing the Greek people and the painful measures required shall not be liable under the current government but many years of bad policies of the past.
    Typically, on optimism the government for granting the second and third tranche of the loan, Mr. Thomsen said that based on the data available so far to understand. He added that this course will depend on the final evaluations (SS in late July and October respectively). Confirmed that while the IMF will open a permanent representative office in Athens, headed by looking at this time.

    The data highlighted in yesterday’s press conference and related communication are as follows:
    public revenue resulting “almost as expected. He did indeed Nterouz special reference to the 6% increase in revenue from VAT from February to May period, while Mr. Thomsen stated that the recession does not help their growth.
    The expenditure “observed under strict control the state budget ».

    The government deficit” until the end of May was lower than had been budgeted at a deficit. However, it noted that “the final assessment should take into account the developments that are not directly connected with the government, for which there is still no complete information. Obviously this is for hospitals, insurance funds and local governments for which the troika know that finances are not monitored or controlled and can be a big thorn in the execution of the budget. The MoU has been agreed that the government will begin to publish full details for these agencies by late June. The insurance reform “is well advanced and has agreed to several key factors, as was made in the memorandum. Apparently not yet agreed on all points. Nterouz He said that insurance reform is “very ambitious and very social».

    For changes in the labor market were cautious, saying they gave directions and then the government identified these measures. But stressed that reforms are key to recovery of the country’s competitiveness. Also progressing reforms in public administration, privatization, labor market and fiscal control.
    Good progress is to regard the establishment of the Financial Stability Fund.
    Especially for the banking system Mr Mazouch said he is “a firm foundation and that the Financial Stability Fund ensures that we have sufficient liquidity and thus will remain a firm foundation. Add especially in response to a question about deposit guarantees from the government that “there should be no concern».
    However, expressed worry about inflation as well, they said, does not allow the program to yield the expected benefits. This is because inflation means that the Greek products are expensive and, hence, its competitiveness is not improving in order to stimulate growth.
    However, the development exefrasanschetiki-optimism, saying that the recession is likely to be less than 4%. But she added that it is premature to begin to change their forecasts.

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