UPDATE 1-FACTBOX-Greece unveils deficit cut plan

Jan 14 (Reuters) - Greece's socialist government presented on Thursday a roadmap to shrink soaring budget deficits and regain market credibility after three credit rating downgrades last month. [ID:nLDE60D0QY]

The government aims to reduce its deficit to 2.8 percent of GDP, below the EU's 3 percent of GDP limit, in 2012, from 12.7 percent of GDP last year.

The key question for investors, rating agencies and Greece's EU partners will be whether the plan's set of policy initiatives contains enough structural cost-cutting measures to be deemed feasible and convincing.

Following are some key assumptions, targets and measures, from the plan.

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(in pct, euros bln)

2010 2011 2012 2013 -----------------------------------------------------------

DEFICIT TO GDP (%) 8.7 5.6 2.8 2.0

GDP GROWTH (%) -0.3 1.5 1.9 2.5

PUBLIC DEBT(% to GDP) 120.4 120.6 117.7 113.4

C/A DEFICIT(% to GDP) 6.6 5.9 4.9 4.0

NET BORROWING

REQUIREMENT (% to GDP) 8.7 5.6 2.8 2.0

PUBLIC INVESTMENT

(% of GDP) 4.2 4.4 4.5 5.0

GENERAL GOVT REVENUES

(% of GDP) 42.4 44.0 45.4 45.7

GENERAL GOVT SPENDING

(% of GDP) 51.1 49.6 48.2 47.7

PRIMARY BUDGET

SURPLUS (% of GDP) -3.5 -0.2 2.6 3.2

PRIVATE CONSUMPTION -1.0 0.3 0.8 1.0

INVESTMENT -1.6 4.5 5.5 8.4

EXPORTS 2.5 4.0 6.5 7.2

IMPORTS -3.0 2.0 2.8 3.4

INFLATION 1.4 1.9 1.8 1.8

UNEMPLOYMENT 9.9 10.5 10.5 10.3 -----------------------------------------------------------

Source: Finance Ministry presentation

MEASURES LAID OUT IN PRESENTATION TO BOOST CREDIBILITY

* Creation of a Parliamentary Budget Office

* Design of "fiscal rules" to ensure budget execution, with legislation expected by mid-2010

* Monthly reporting requirements for key ministries

* Creation of a 10 percent contingency reserve to assist in cost-reduction efforts of government in 2010

* Privatisation revenues of about 2.3 percent of GDP over the next three years.

* The government reiterated previously announced measures to freeze the salaries of civil servants earning more than 2,000 euros a month. (Reporting by Harry Papachristou, editing by Mike Peacock)