European media report that the IMF sees Greek debt unviable in long term

Bloomberg notes that the IMF is questioning whether the goals of the Greek government's development plan are realistic, it is worrying about banks, which does not exclude the need for new injections in the future, but more so whether the debt will be viable in the long run by affecting negatively the confidence of the markets.

"The IMF warns the Eurozone that Greece will need more debt relief," the Financial Times said, stressing that under the Fund the Greek debt would not be sustainable in 20 years and the European partners would need new lightening measures to maintain investor confidence and not need a new rescue plan.

The issue is also reported by Handelsblatt: "The IMF is afraid of a new debt increase in Greece," the German financial newspaper reports in its article. And notes:

"The analysis clearly shows how critical the situation remains, even if the third rescue plan expires on 20 August, and Greece will for the first time in eight years stand on its feet. The IMF can see aome progress: "Greece has left the crisis behind," says IMF expert Peter Dolmen. In the short to medium term, the country is stable due to the growth of the economy, the budget surpluses and the liquidity pillow provided by creditors in Athens. Thus, the debt of 177% of GDP is expected to fall below 140% in 2027. But by 2028, the IMF estimates it will increase since Athens will have to repay old debts from that year along with new ones for which it will pay higher interest than today. "The long-term outlook remains uncertain," says Dölmann, and this is why "new debt relief is welcome" beyond what has already been agreed."

"The IMF challenges the austerity goals for Greece," writes Spiegel, pointing out that the Fund is very pessimistic in its projections for the future as it expects lower growth and surpluses than the Commission. It also notes the IMF alarm to Athens: "The IMF does not exclude criticism against the Greek government. In spite of major reforms, the public must become more effective, which is true in particular of the "shortcomings in the collection of taxes". There is also a need for action to further reduce bad loans for Greek banks and for additional reforms in the labor market and product markets. But the IMF seems to doubt whether the Greek government will follow such recommendations after the end of the loan programs. According to the report, Greece is threatened by "reformist fatigue" - and because elections are in 2019 and politicians would not want to burden citizens with new burdens. "

Negative - especially for European partners, particularly Berlin - is the style of La Stampa's article: "IMF: Greece's debt  unsustainable: creditors need to do more to help it"

The Italian newspaper notes: "Probably in Greece they will not know whether to laugh or cry with the latest oracle for their financial destiny. The International Monetary Fund says that in 20 years the cost of paying interest on public debt in Athens will become unsustainable. If you read it positively, this new verdict could sound like this: "For 20 years you will be fine. Hurray. But no. Its meaning is that the next twenty years will be full of tears and blood and there will be (as years pass) more tears and more blood to finally reveal that each sacrifice was futile and all will end again in a tragedy and not in reform through austerity. The Fund says the goals of the budget surplus imposed on Athens to pay interest on the debt will stifle the Greek economy (...). Therefore, the IMF's warning to international creditors: "Greece needs more debt relief".

Les Echos "The IMF challenges Europe's optimism about Greece." The French financial newspaper notes: "[The IMF] does not doubt that Greece will need a new debt relief in the coming years. A likelihood that Europeans have predicted, under certain conditions, in the agreement reached on 22 June. But not before 2032. The IMF is concerned about how solid these commitments are. If Greeks do not respect their promises of reforms or if a change of political majority in one of the eurozone member states leads to questioning this promise of debt relief, the scenario should be rewritten ... "

In a similar fashion, the British Telegraph notes that the Fund calls on the Greek government to increase spending and reduce taxes, since excessive austerity undermines the long-term prospects of the economy.

«Το ΔΝΤ αμφισβητεί τους στόχους λιτότητας για την Ελλάδα» γράφει το Spiegel επισημαίνοντας ότι το Ταμείο είναι λίαν απαισιόδοξο στις προβολές του για το μέλλον, καθώς αναμένει χαμηλότερη ανάπτυξη και πλεονάσματα σε σχέση με την Κομισιόν. Και σημειώνει επίσης το καμπανάκι που κρούει το ΔΝΤ και προς την Αθήνα: «Στην έκθεση το ΔΝΤ δεν εξαιρεί από την κριτική και την ελληνική κυβέρνηση. Παρά τις σημαντικές μεταρρυθμίσεις το Δημόσιο πρέπει να γίνει αποτελεσματικότερο, πράγμα που ισχύει ιδίως για "τις ελλείψεις στη συλλογή των φόρων". Υπάρχει επίσης ανάγκη δράσης για περαιτέρω μείωση των επισφαλών δανείων των ελληνικών τραπεζών και για πρόσθετες μεταρρυθμίσεις στην αγορά εργασίας και στις αγορές προϊόντων. Αλλά στο ΔΝΤ φαίνεται ότι αμφιβάλλουν κατά πόσο η ελληνική κυβέρνηση θα ακολουθήσει τέτοιες συστάσεις μετά τη λήξη των δανειακών προγραμμάτων. Σύμφωνα με την έκθεση η Ελλάδα απειλείται από “μεταρρυθμιστική κόπωση” -και επειδή επίκεινται το 2019 εκλογές κι οι πολιτικοί δεν θα ήθελαν να επιβαρύνουν τους πολίτες με νέα βάρη».

Πηγή: Διεθνή ΜΜΕ: «Το ΔΝΤ δεν έχει πειστεί ότι η Ελλάδα είναι comeback story» | iefimerida.gr