From the latest IMF report.
1. The longest depression in history, still going…
2. Lead to impoverishment of a large part of the population
3. After 9 years of adjustment, the Greek economy is still not competitive!
4. The heavy hand of the state (too many laws, bureaucracy, clientelism, inept state etc) are largely responsible
5. The export drive is due to lower wages, not increased productivity!
6. Huge increases in tax rates in the last 3 years have (predictably) failed to raise tax revenues
7. Not surprisingly, the large “primary surpluses” of the last 3 years come from government spending cuts (on items like firefighting, security, health system etc)
8. Social spending, particularly on state pensions, remain the highest in the EU
9. Bank credit to the private sector continues to contract, making banks vulnerable
(Texas ratio=non-performing loans divided by tangible equity and loan loss reserves)
10. Non performing loans are the key problem
11. Diverging views on Greece’s debt sustenability
12. Servicing the state debt looks very tough beyond the medium term
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