IMF report: Greek public debt highly unsustainable

Greek public debt is highly unsustainable, the International Monetary Fund said in a report to be discussed during a board council meeting in Washington later today.

The report, exclusively presented by ANA, said that the Greek economy faced four challenges.

The country’s public debt was highly unsustainable the IMF said and recommended a series of measures towards this direction. The Fund recommends that Greece should adopt a “fiscal neutral policy” and noted that its economy did not need any further adjustment. However, it noted that “fiscal reforms” were needed such as reducing a tax exempt sum in order to expand the tax base and deal with the tax evasion problem.

The IMF said that the country’s financial sector should drastically reduce its non-performing loans, to strengthen corporate governance rules and to abolish remaining limitation in capital movement (capital controls) the soonest possible