(AP-ANSA) - BRUSSELS - European Commission officials say
Greece will still be subject to quarterly inspections from
creditors after the bailout program ends in late August. Greece
has already committed to two more years of budget austerity
policies after its third consecutive international rescue
program is concluded. But creditors on Wednesday said Greece
will remain under an "enhanced surveillance framework" to ensure
that it meets ambitious budget targets through 2022. "Greece is
now able to stand on its own two feet but that doesn't mean it
has to stand alone ... The reform era has not ended," EU
Financial Affairs Commissioner Pierre Moscovici said.
The Commission said it was not yet clear whether the
International Monetary Fund would join the inspections. Greece
has survived on international rescue programs since 2010, but
cost cutting measures have badly weakened its economy and left
the country with massive levels of debt to repay. The national
debt is set to dip slightly to 178 percent of gross domestic
product this year. In return for continued compliance, creditors
have promised the eurozone member more generous debt repayment
terms. Despite returning to growth after a massive recession,
Greece leaves the program still facing major difficulties. Banks
are struggling to deal with a high rate of bad loans. At over 20
percent, Greece has the highest unemployment rate in the euro
currency union. Government bonds remain below investment grade
even though their yields have fallen to manageable rates. And to
help reduce its debt, Greece has committed to punishingly high
primary budget surpluses - that is, the budget excluding the
cost of debt servicing - of above 3.5 percent through 2022. EU
officials did not say how long the enhanced inspections would
last but said regular budget monitoring would be carried out
until 75 percent of the bailout debt had been repaid. "Enhanced
surveillance is there to help Greece build confidence with
markets, investors and companies," Commission Vice-President
Valdis Dombrovskis said. "They all want stability and
predictability." (AP-ANSA).
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