Will Greece avoid a depression?

Charles Collyns
The US Treasury Department has announced that one of its senior officials, the Assistant Secretary for International Finance Charles Collyns, will travel to Greece and Italy this week to discuss economic issues.

Collyns will visit Athens, Greece and Rome in Italy, as part of the Treasury Department’s on-going bilateral engagement, the agency said in a statement.

According to the statement, Collyns will meet with senior government officials and private sector representatives to discuss economic and policy developments in Greece and Italy.

An International Monetary Fund (IMF) mission has started discussions with Greek authorities on “how to bring Greece’s economic program, which is supported by IMF financial assistance, back on track in terms of goals set until 2020,” the IMF said on Monday, stressing its support for Greece.

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Greece is however, significantly far off reaching the 2020 goal, the officials said. One estimated that the overshoot could be up to 10 percentage points, equivalent to around €30bn.

As a result, the IMF could decide to pull out of the second bailout programme, having already said that further missed targets would not be acceptable. That would leave euro zone member states and the ECB to bear the cost alone.

The International bailout program is worth about 130 billion Euro, or 157 billion US dollars. – SAnews.gov.za-Xinhua