The International Monetary Fund (IMF) said on Tuesday that Greece was ready to access the markets again.
In its report, the IMF said that Greece’s reforms efforts in combination with debt relief agreed upon with Eurozone partners are ready to take the next step and exit with success the ESM program and gain access to the market in the medium term. However, it goes on to warn of challenges in the future.
“The debt relief measures mitigate medium-term refinancing risks, improve medium-term debt trends, and reopen access to medium-term financing. However, this improvement in debt indicators will be hard to sustain over the long-run under what staff considers realistic assumptions on average nominal growth (around 2.8 percent) and fiscal primary balances (at most 1.5 percent of GDP), suggesting that it could be difficult to sustain market access over the long run without further debt relief,” the report said.
“In this regard, the commitment of European partners to undertake an assessment of whether additional debt relief will be needed helps mitigate risks (but should be contingent on realistic assumptions),” it added.