The Greek debt situation remains precarious as the republic needs larger financial support than programmed. This factor could jeopardize a deal between Athens and the European Union. Relevant information was unveiled in the report of the International Monetary Fund (IMF) published yesterday.
Experts at the International Monetary Fund said Greece’s debt-to-GDP ratio will rise to 200% over the next two years from the current level of 175%. The unfolding situation calls for far more debt relief. Thus, the IMF proposed to give Greece a 30-year grace period on servicing its European debt.
On July 14, Prime Minister of Greece Alexis Tsipras said he assumes his responsibility of signing a text that he does not believe in, but is obliged to implement.
On July 13, Athens and the European Union reached agreement over a program for overcoming the debt crisis in Greece. According to the recent agreement, the republic will receive 86 billion euros in the next three years in exchange for austerity measures.
As Greece has failed to repay the IMF 2 billion euros in time, its current debt to the fund exceeds 30 billion euros.
