A report has been released that has warned that the debt that Greece is battling with was ‘out of control’. After the report was released by the new budget watchdog the Greek finance ministry went on the defensive, clearly expressing frustration at the report.
The content off the report has been put down to inexperience from those that produced it in the view of Evangelos Venizelos, the Finance Minister. Mr Venizelos had to explain to auditors from the EU, ECB and IMF why Greece had missed their targets.
The finance minister insisted that the document lacked the validity or equivalent international reports.
The report was not subtle in stating that the dynamic of Greece’s huge debt is ‘out of control’ and said that the slippage on meeting deficit targets, which have been amplified by a deep recession had threatened to remove any benefits from the European Union bailout.
It was in July that eurozone leaders had approved a bailout for Greece to save the Mediterranean nation from bankruptcy with the private sector providing nearly 50% of the bailout.
The Greek economy is contracting at a very shocking rate and to compound the problem they are facing Greece is currently undergoing an audit which will reveal whether or not it will be handed the latest portion of the earlier bailout loan.
Greek economy shrinking faster than expected
Mr Venizelos had expressed his view on the report by saying: “All responsible international organisations know in which way macroeconomic and fiscal reports are compiled, checked and published. It is clear that the budget office still lacks this knowledge, experience and responsibility.”
The debt that Greece is now facing is at a staggering 350 billion euro’s. The economy is looking at shrinking more than 4.5% this year a figure well over the predicted 3.5% that many thought was a realistic rate for the predicted fall.