Washington Greece needs 50 billion euros ($55 billion) over the next three years, including 36 billion euros more from EU lenders, to stabilize its finances even under existing creditor plans, the IMF said today. In a new report that raised pressure on its European partners in Gr
Washington
Greece needs 50 billion euros ($55 billion) over the next three years, including 36 billion euros more from EU lenders, to stabilize its finances even under existing creditor plans, the IMF said today.
In a new report that raised pressure on its European partners in Greece's rescue, the International Monetary Fund acknowledged a huge deterioration in the country's prospects in recent months.
It slashed Greece's 2015 economic growth forecast to zero percent, from 2.5 percent forecast in April.
That estimate, too, was made before Greece broke off talks with official creditors last weekend and ordered capital controls and its banks shut for a week, all of which has further stifled economic activity.
The new "preliminary draft" analysis of Greece's finances highlighted the deterioration that has taken place since Prime Minister Alexis Tsipras and his anti-austerity Syriza party took power at the beginning of 2015.
"Very significant changes in policies and in the outlook since early this year have resulted in a substantial increase in financing needs," it said.
The report cited a nine billion euro shortfall in the government's privatization commitments under the IMF-European Union bailout programs, while noting its only vague commitments to further sell off state assets to raise money.
