Brussels, 15/09/2014 (Agence Europe) - Over the weekend, the Greek Prime Minister, Antonis Samaras, pledged that the “troika” (the European Commission, the European Central Bank and the IMF) would leave the country by the end of the year, with the Eurozone bailout plan coming to an end and the country back on its feet.
In an interview published in Sunday's edition of the newspaper Proto Thema, Samaras said that from 2015, Greece would be able to cover not only its expenditure, but also the interest on its debt, and that no further loans would be necessary. Last week, a senior EU official said that the Eurozone had heard and taken on board the Greeks' expressed desire of returning to autonomous funding. This message was also taken by the Greek Minister to the Eurogroup meeting held in Milan over the weekend, according to the Greek press. In this scenario, the IMF programme would continue only until 2016 and the country would be entirely financed via the market, the same senior official stated, stressing that the volumes in question were not enormous (less than €2 billion for the rest of this year).
Welcoming the country's efforts, the ratings agency S&P increased Greece's rating by one notch, from B- to B, together with stable prospects. It predicts that “from next year, the Greek economy will emerge from seven consecutive years of negative growth” and maintain primary fiscal balances (not including debt repayment) of 2% of GDP between 2014 and 2017. The economic adjustment programme forecasts a primary surplus of 3% in 2015, then 4.5% annually in 2016 and 2017. S&P also believes that funds held in the government's Hellenic Financial Stability Fund will be sufficient for any further bank recapitalisations.
If Greece is able to avoid a third bailout, the “troika” will, in any case, carry out post-programme monitoring, via less intrusive six-monthly missions, until the country has paid back 75% of the loans it has received. (EL)