Global General

Greek cash deficit down 32.6% so far this year

(Xinhua)
Updated: 2010-08-10 00:13

ATHENS -- Greek cash deficit was reduced by 32.6 percent year on year in the first seven months of this year, the Bank of Greece (BOG) said on Monday in a statement.

According to BOG, the Greek state's cash deficit in July this year stood at 14.47 billion euros (US$19.23 billion) compared to 21.47 billion euros (US$28.45 billion) last year the same period from January to July.

Local analysts stressed that this is a positive development from debt-ridden Greece, since it means that the country now has smaller need of more borrowing from markets. ?

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In May this year Greece signed an agreement with European Commission, European Central Bank and International Monetary Fund (IMF) to receive a 110 billion euro (US$146.2 billion) aid package over a three-year period in exchange of radical structural necessary reforms and austerity measures to overcome a severe debt crisis that broke out in late 2009.

Based on the progress of the Stability and Growth Program to get the national economy back on the right track, Greek government officials estimate that Greece could properly return to the international markets in 2011.

Auditors of the EU and IMF concluded last week a check on the implementation of the program and are due to submit to EU and IMF headquarters a positive progress report by early September, which paves the way for the release of the second 9 billion euro (US$11.96 billion) tranche of foreign aid to Greece this year.