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2016 Postmortem
In reply to the discussion: Clinton in 2011: Greek austerity is necessary "chemotherapy" to give Greece a "strong economy". [View all]cstanleytech
(26,291 posts)33. Here is the report
https://www.imf.org/external/pubs/cat/longres.aspx?sk=43044.0
Summary: At the last review in May 2014, Greeces public debt was assessed to be getting back on a path toward sustainability, though it remained highly vulnerable to shocks. By late summer 2014, with interest rates having declined further, it appeared that no further debt relief would have been needed under the November 2012 framework, if the program were to have been implemented as agreed. But significant changes in policies since thennot least, lower primary surpluses and a weak reform effort that will weigh on growth and privatizationare leading to substantial new financing needs. Coming on top of the very high existing debt, these new financing needs render the debt dynamics unsustainable. This conclusion holds whether one examines the stock of debt under the November 2012 framework or switches the focus to debt servicing or gross financing needs. To ensure that debt is sustainable with high probability, Greek policies will need to come back on track but also, at a minimum, the maturities of existing European loans will need to be extended significantly while new European financing to meet financing needs over the coming years will need to be provided on similar concessional terms. But if the package of reforms under consideration is weakened furtherin particular, through a further lowering of primary surplus targets and even weaker structural reformshaircuts on debt will become necessary.
Summary: At the last review in May 2014, Greeces public debt was assessed to be getting back on a path toward sustainability, though it remained highly vulnerable to shocks. By late summer 2014, with interest rates having declined further, it appeared that no further debt relief would have been needed under the November 2012 framework, if the program were to have been implemented as agreed. But significant changes in policies since thennot least, lower primary surpluses and a weak reform effort that will weigh on growth and privatizationare leading to substantial new financing needs. Coming on top of the very high existing debt, these new financing needs render the debt dynamics unsustainable. This conclusion holds whether one examines the stock of debt under the November 2012 framework or switches the focus to debt servicing or gross financing needs. To ensure that debt is sustainable with high probability, Greek policies will need to come back on track but also, at a minimum, the maturities of existing European loans will need to be extended significantly while new European financing to meet financing needs over the coming years will need to be provided on similar concessional terms. But if the package of reforms under consideration is weakened furtherin particular, through a further lowering of primary surplus targets and even weaker structural reformshaircuts on debt will become necessary.
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Clinton in 2011: Greek austerity is necessary "chemotherapy" to give Greece a "strong economy". [View all]
pa28
Jul 2015
OP
I know. You see it over and over again in the language of neoliberals and the IMF.
pa28
Jul 2015
#19
this shows it's way further than just "corruption from changing the party to attract corpo money"
MisterP
Jul 2015
#16
Oh, but I'm sure she's "evolved" since then and now believes taxing the wealthy is the answer.
Scuba
Jul 2015
#10
Wasn't the expectation that a woman politician would be more nurturing, caring, sensitive
Divernan
Jul 2015
#17
I've never had that expectation. Women are individuals, not stereotypes. n/t
winter is coming
Jul 2015
#27
A great question that highlights the difference between Clinton and Sanders.
PatrickforO
Jul 2015
#18
The use of medical metaphors is an indicator of anti-democratic inclinations.
Ken Burch
Jul 2015
#28