Scenario D: Thee final scenario projects a growth of 1.25% and a 3.5% surplus until 2022 to ease off to 1.8% until 2060.
This is accompanied by a reference that the Greek debt could be made sustainable with: a) an extension of EFSF weighted average loan maturities by 15 years with the last loans maturing in 2080; b) the capping of interest on loans at 1.0% until 2050; and c) setting the amortisation capital at 0.4% of Greek debt.
Conversely, European creditors are waiting for the IMF’s decision on whether it will rejoin the Greek bailout as a lender, which for many EZ member-states is a mandatory condition for continuing the program.
Eurogroup chairman Jeroen Dijsselbloem told reporters before the session that Europeans are awaiting the Fund’s commitment that it will rejoin the program, with all efforts extended towards this direction.
Last week, at the World Economic Forum in Davos, a host of top executives from global banks said that they were evaluating the need to relocate staff away from London as a result of UK Prime Minister Theresa May saying that Britain would quit the single Market post-Brexit.
Eurogroup chairman Jeroen Dijsselbloem told reporters before the session that Europeans are awaiting the Fund’s commitment that it will rejoin the program, with all efforts extended towards this direction. Bellos [email protected] Eurogroup meeting considered as crucial for the Greek program and the bailout-dependent country’s economic recovery began at 14.45 GMT in Brussels on Monday, with initial indications pointing to a “marathon” session.
The increasingly unpopular Tsipras government, days after passing the latest austerity package through Parliament, is desperately seeking a positive nod from creditors for immediate medium-term debt relief measures.
Scenario C: In this scenario, growth is estimated at 1.25%, the surplus at 3.5% until 2022 to ease off gradually to 1.8% until 2060.
This scenario has the following reference medium and long term relief framework agreed at the Euro Group at May 2016 not adequate to restore debt sustainability.