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The IMF Crunches The Greek Numbers Again

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How overly optimistic was the IMF, re: Greece? About €11 billion. Or, more accurately, about 11 billion German euros. Sorry.

Greece's bailout faces a shortfall of around €11 billion ($14.59 billion) by the end of 2015, the International Monetary Fund said Wednesday, warning that the shortfall could be bigger if growth disappoints.

That money, and debt relief worth at least 4% of the country's output, will have to come from the euro zone to keep the Greece afloat, the IMF said in its latest review of the joint emergency financing package….

Greece's bailout faces a €4.4 billion financing gap in 2014 and another €6.5 billion in 2015. The gap could be even bigger if the fund's growth outlook is overly optimistic or if Greece doesn't reach its privatization revenue target, said Poul Thomsen, head of the IMF's mission to Greece….

But at least one of the 24 IMF executive directors declined to back the latest tranche of funding for Greece. Paulo Nogueira Batista, the IMF board member for Brazil and 10 other member countries, said the staff's debt outlook "seems all but a delusion" and the growth outlook over idealistic.

Luckily, there are a few more people working/paying taxes to help cover the bill.

The European Union's unemployment rate fell in June for the first time in almost two-and-a-half years, a sign that a long deterioration in the bloc's jobs market may be coming to an end as the economy stabilizes.

The number of jobless people in the countries that use the euro also fell, albeit modestly, for the first time in two years….

The number of unemployed in the 17 euro-zone countries edged down to 19.27 million from 19.29 million, the first decline--albeit a modest one--since April 2011. The fall wasn't sufficient to move the jobless rate overall, which held firm at 12.1%--its highest on record--for the fourth straight month.

Greek Bailout Falls $14.6 Billion Short [WSJ]
EU jobless rate falls for 1st time in over 2 years [MarketWatch]


By MEDEF [CC BY-SA 2.0], via Wikimedia Commons

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