Greece tries to turn the credit corner

With Greece continuing to run budget deficits that are unpalatable to credit rating agencies and breach EU guidelines, the government must look beyond tax increases to deal with the problem. Dimitris Kontogiannis reports.

Debt management agency looks to exotic options

Constantine Karamanlis: The high
debt burden remains a pressing
concern for the Greek prime
minister


FOLLOWING THE FINAL revision of  Greece’s fiscal accounts, the result of an audit undertaken a short time after the conservative government came to power early in March 2004, the country’s 2004 budget deficit skyrocketed to 6.1% of GDP and its public debt to 110.5% of GDP, surpassing even the most pessimistic projections.

Under these circumstances the country will have to convince credit agencies and markets that its public finances have entered into a new, sustainable, virtuous cycle if it is to win a credit upgrade.

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