According to the Parliamentary Budget Office, one of the most predominant future scenarios is that Greece will be granted a new loan by the European Support Mechanism (ESM), accompanied by another memorandum in order to finance the Greek economy during the next few years.
In its quarterly report, which was published June 29, the State Budget Office stressed that the financing gap in Greece will reach 14.9 billion euros by the end of 2016.
In order to fill this gap, Greece has two options: either acquire another loan from ESM or raise funds from markets. However, the report stated that the first scenario is more plausible.
According to the Parliamentary Budget Office, the financing of the Greek economy is still uncertain and that comes as an obstacle to the countries momentum towards recovery. Other sources of uncertainty are:
– Red household and business loans that restrict the lending capacity of banks
– The halt of investments
– The large Greek state debt discourages serious foreign and domestic entrepreneurs from investing in the Greek economy
– The absence of a minimum consensus between the country’s major political forces
and,
– The growing citizens’ debts to the Greek tax office and pension funds
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