Public debt ratio still at elevated levels but servicing costs broadly manageable over the coming decade
Public debt ratio still at elevated levels but servicing costs broadly manageable over the coming decade
Greece Focus Notes
25 Ιουλίου 2013
This note presents the second installment of a comprehensive Eurobank Research study on Greece’s sovereign solvency position. In the first installment we examined the attainability of this year’s programme target of generating a balanced general government primary position following a lower than expected deficit of 1.3%-of-GDP in 2012. Moreover, we discussed the case for some new OSI to improve the sustainability of Greek public debt and presented a detailed analysis of the general government borrowing needs and funding sources over the present adjustment programme’s implementation horizon (2012-2016). This note takes a closer look at Greece’s debt rollover risks by extending the aforementioned analysis over a longer forecasting horizon and comparing Greece’s public debt servicing costs to those of other euro area countries.