GRIM PROGNOSIS: A European diplomat says current plans to save Greece from financial collapse would still leave the country with debt far above the maximum level set by its international creditors.
THE DETAILS: The diplomat cited figures from a new report by Greece's international debt inspectors — the European Commission, the International Monetary Fund and the European Central Bank — that analyzes Greece's growth prospects, the impact of new austerity measures, debt relief Greece has negotiated with private bondholders and the new bailout.
THE GAP: When they tentatively agreed on more help for Greece in October, the leaders of the 17 euro countries said the country's debt load had come down to 120 percent of its economic output by 2020 — the maximum they said was manageable without external support. The new level is now expected to be closer to 129 per cent, said the diplomat, speaking on condition of anonymity because the report is confidential.
There are no comments yet