Troika sees Greek debt at 144 pct/GDP in 2020 – sources

by on November 12, 2012 7:05 pm GMT

Mon Nov 12, 2012 2:05pm EST

Nov 12 (Reuters) – International lenders are
reaching a consensus that Greece’s debt burden will fall to 144
percent of gross domestic product in 2020 and roughly 10
percentage points lower two years later if current policies do
not change, several officials told Reuters on Monday.

“No debt sustainability analysis was presented yet, but
there seems to be a consensus on 144 percent,” said one source,
speaking on condition of anonymity.

Greece’s second international bailout in March was supposed
to make its debt sustainable at 116.5 percent of economic output
in 2020, but two elections and months of delays to agreed
policies have thrown targets off course.

Athens said earlier this month that debt would rise to
around 190 percent of GDP next year as things stood.

Disagreement between members of the troika – the European
Commission, European Central Bank and International Monetary
Fund – over Greece’s debt sustainability has threatened to
further delay the disbursement of the next 31.5 billion euros
tranche of the country’s second bailout.