IMF Gives Downbeat View of Greek Economy at End of Bailout Era
- Fund says banks may need up to 1.9 billion euros extra capital
- More reforms needed to permanently raise growth, IMF says
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The International Monetary Fund gave a glum assessment of Greece’s prospects, weeks before the country embarks on life outside the bailout programs that have dominated public life for the last eight years.
While commending the Greek government for eliminating the fiscal and current account imbalances and restoring growth, the Washington-based lender said “risks are tilted to the downside.” The country’s banks could need more capital, and some of the IMF directors questioned the long-term sustainability of Greece’s public debt and the realism of budget and growth projections, according to the fund.