ATHENS, April 25 Greece's debt dynamics have
slightly worsened and the bailed-out country still relies on its
international creditors to remain fully funded, the European
Commission said in a report on Friday.
The European Union's executive expects Greek debt to stand
at about 125 percent of gross domestic product in 2020 and at
about 112 percent of GDP in 2022, the Commission said.
In its previous analysis of Greek debt sustainability,
Greece's lenders saw debt at 124 percent of GDP in 2020 and
"substantially below" 110 percent in 2022.
"This deterioration is due to several factors: a lower
forecast for nominal GDP, mainly reflecting a deeper adjustment
in prices, a somewhat lower forecast for privatisation revenue
following delays in privatising government assets and higher
arrears clearance compared to the previous revue," the report
Greece's projected privatisation revenues through to
end-2020 have been lowered by 1.9 billion euros to 22.3 billion
euros, according to the report.
Despite the fact that Greece returned to bond markets
earlier this month, it still relies on a pledge by euro zone
countries to provide it with further help, to be considered
fully funded, the Commission said.
The country faces a funding gap of 5.5 billion euros ($7.60
billion) through to end-May 2015, according to the report. Also,
the Commission's debt forecasts for 2020 and 2022 are based on
the assumption of further debt relief for Athens.
Greece earlier this week qualified for further debt relief
from its euro zone partners after European officials confirmed
it achieved its first primary budget surplus since 2002, before
interest and other one-off items.
Greece's government says it needs no third bailout, after
the two ones it has received since 2010. The EU and the IMF have
paid Athens more than 215 billion euros since the start of the
(Reporting by Harry Papachristou)