Log in
A+ A A-

Figures Refute Government Success Story

Basic indicators and qualitative data show that Greece is still in the mire of economic stagnation, if not decline, refuting the government's success story.


The government may be talking success story and the finance may be pointing to improvement in indicators, like savings and of course non-performing loans (NPLs).
The deep recession has lowered GDP by 26%, increased debt to 321 billion has depleted savings, destroyed the banking system, and dramatically increased NPLs held by banks, and the continuity of the phenomena prove that Greece is still ailing.
The continuing increase in NPLs signifies the inability of households and businesses to pay their debts.
But while the government is talking of “success stories” a host of government organizations have accrued owed rent to the private sector of 10-12 months in arrears. When the state is not paying its obligations to the private sector, than the so called “primary surplus” is an accounting trick.

NPLs at over 90 days in arrears have topped 83.3 billion euros with a prospect of rising to 88-90 billion euros, when they will register a record high. With a total of 216 billion euros loaned out the NPLs are 38.5% of the total.

So, while NPLs are skyrocketing, savings, for the 16 months from January 2013 to April 2014, savings remained steadily at around 161 billion euros.
The amount of 150.5 billion in June 2012 was the lowest, with a slow rise since then hat lasted to the end of 2012, followed by stagnation, that remains to this day. The conditions of the economy show that any additional savings capability is beyond the capabilities of Greek societies. This is the true meaning of the 16 month stagnation in savings.
High taxes, decreasing incomes, and recession are striking at society but is also down showing the government's success story.