In a report about the viability of the Greek debt, the International Monetary Fund states that the payment terms and schedule of the Greek debt towards the Eurozone must be significantly re-profiled
The IMF estimates that Greece will not be able to maintain a 3.2% surplus on the GNP beyond 2018. The fund lowers those estimates to 1.5% of the GNP.
It should be noted that the IMF estimates that the Greek debt will be around 174% of the GNP by 2020, while by 2022 it is expected to drop slightly to 167%. The report states that the debt is expected to drop gradually to 160% of the GNP by 2030. It is estimated to increase again to 250% by 2060.
At the same time, always according to the IMF the net funding needs of Greece (the moneys Greece will need in order to cover the fiscal deficit) are expected to rise beyond the 15% of the GNP mark by 2024 and beyond 20% by 2029, reaching 30% by 2040 and almost 60% of the GNP by 2060.
The IMF stresses that the net funding needs of the country must be kept below 10% of the GNP until 2040.
Click here for the full IMF report on the Greek debt
On the proposed Privatization Fund and the revenues from the privatizations, the IMF stresses that it has not altered its estimates of 5bn euro in the period 2015-2030.
In the report, the IMF notes that it could continue to offer financial support to Greece should the fiscal goals change. The fund is requesting further measures such as the re-profiling of 1/3 of the official loans at the end of each year until 2018 as well as the application of steady interest rates at 1.5% on the Greek debts towards the Eurozone.
In effect , the fund states that Greece should receive an immediate, unconditional lightening of its debt, and concessions on new loans with long grace periods, suspension of payments and steady interest rates, in order for the markets to realize that the institutions are fully committed to complete the various reforms.