Greece has been taking decisive action to get
back on track. But more needs to be done to address the
On February 6 2017, the executive board of the IMF
completed the article IV consultation with Greece. The IMF
stated in its staff report that Greece has reached important
goals in settling political and economic imbalances during the
past years. However, progress is still too slow and investment
risks remain high. While the new European stability mechanism
(ESM) supported programme has helped stabilise the economic
situation, the underlying issues hindering the recovery have
not yet been fully addressed.
In particular, the IMF called for decisive action in
repairing bank and private sector balance sheets, returning to
sustainable credit growth, and expressed concern that without
reducing non-performing loans (NPLs) rapidly, banks would not
be able to provide new lending to viable firms, hence slowing
down the recovery.
The issue of...