Thomsen sees progress and delays in the Greek program

Greece has made significant progress in correcting imbalances before the crisis, the IMF report for the country reads, stressing that "there were significant delays and deviations" and "the reform effort is far behind schedule."

The head of the Fund in Greece, Paul Thomsen, referred to the content of the report in his statements last night.

Among other things, the report says that with an unprecedented European and international support and consistent fiscal adjustment by the Greek authorities, the country is now on the verge of achieving a primary balance, a "remarkable achievement" and that "external imbalances have been reduced significantly."

Reference is also made in the sixth year of the recession, noting that the production (GDP) has fallen almost by 25% since its peak in 2007, the unemployment rate is about 27% and youth unemployment exceeds 57%. Also, that "the high cost adjustment reflects hesitant and piecemeal implementation of structural reforms."

The report records the measures agreed between Greek authorities and lenders, noting that recent macroeconomic developments are broadly in line with the program’s projections.

Delays in the pricing of real estate taxes, overruns in expenditure on health and weaknesses in tax collection among other things are all included on remarks for measures that are not implemented, for delays and dangers that may arise.

Especially for tax administration, the report notes that there has been some progress in strengthening the autonomy of revenues, but new obstacles have emerged, the authorities have strengthened the ability of units for taxpayers with high incomes and debt recovery has also fallen behind schedule.

Reference is also made to dismissals from the public sector, to replacing the redundant employees by new staff with the requisite skills, stressing that Greek authorities closed the ERT in June and "opened a smaller, more efficient station" that could rehire a number of former ERT employees.