Jump to content
House Price Crash Forum
interestrateripoff

Greece Claims Deficit Cut By 40% In First Half Of Year

Recommended Posts

http://news.bbc.co.uk/1/hi/business/10510415.stm

Greece's finance minister, George Papaconstantinou, has said the country cut its deficit by 42% this year.

He hoped Greece would be able to borrow from financial markets again by 2011.

It means the country is beating a target set by the IMF and EU under the terms of a 110bn-euro (£73bn, $88bn) emergency loan extended this year.

According to Greek central bank data, the government's deficit was 11.5bn euros in the first half of the year, down from 19bn euros a year earlier.

The deficit for the first six months stood at 4.9% of GDP, well inside the IMF target of 5.8%.

The Greek government has vowed to cut the full-year deficit to 8.1% of GDP, from 13.6% last year.

The turnaround in the primary deficit - which ignores debt service costs and is the best measure of financial stability - was even more striking, falling 56%.

I agree lets ignore debt servicing costs because that's just stupid, debt servicing doesn't count.

No wonder the FTSE has rallied the economic debt trap has been fixed. Greece is leading the way, you can lend to Greece now in full confidence.

Edited by interestrateripoff

Share this post


Link to post
Share on other sites

http://news.bbc.co.uk/1/hi/business/10510415.stm

I agree lets ignore debt servicing costs because that's just stupid, debt servicing doesn't count.

No wonder the FTSE has rallied the economic debt trap has been fixed. Greece is leading the way, you can lend to Greece now in full confidence.

Any sensible household would concur that ignoring the primary outgoing cost (mortgage re-payment) is the right thing to do when financial planning.

Taking into account debt repayment is sooooo last year.

Share this post


Link to post
Share on other sites
According to Greek central bank data, the government's deficit was 11.5bn euros in the first half of the year, down from 19bn euros a year earlier.

If the numbers are true that's an impressive achievement.

Share this post


Link to post
Share on other sites

Especially if GDP hasn't been affected.

Good point.

It would be interesting to know where the savings came from; did people start paying taxes due, is it purely expenditure reduction?

Share this post


Link to post
Share on other sites

Problem 40% fixed in the first half of the year--they will be 100% good to go by early next Spring. Now, if Greece canb solve all its debt problems so quickly surely Spain and the others can do likewise. They might as well cancel the "stress tests" for banks as the danger has passed. Very quickly too.

The Euro should begin flying off the shelves vs. the Pound and $ now.

Share this post


Link to post
Share on other sites

Good point.

It would be interesting to know where the savings came from; did people start paying taxes due, is it purely expenditure reduction?

https://www.cia.gov/library/publications/the-world-factbook/geos/gr.html

Budget:

revenues: $115 billion

expenditures: $159.8 billion (2009 est.)

Unemployment rate:

9.5% (2009 est.)

country comparison to the world: 113

7.7% (2008 est.)

http://www.americanprogress.org/issues/2010/05/greek_myth_profligacy.html

It would need a big increase in people paying there taxes looking at this graph, plus they are going to have to make up those not paying tax due to unemployment.

They seem to have a very big turnaround in fortunes, however it may be too late to help.

greece_graph2.bmp

greece_graph2.bmp

Share this post


Link to post
Share on other sites

http://news.bbc.co.uk/1/hi/business/10510415.stm

I agree lets ignore debt servicing costs because that's just stupid, debt servicing doesn't count.

No wonder the FTSE has rallied the economic debt trap has been fixed. Greece is leading the way, you can lend to Greece now in full confidence.

:lol::lol::lol:

What will GDP be though?

OK it's good news of a sort, but it's heavily spun, bigtime.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 261 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.