Galery

1

The external debt of Greece grew by another 41.8 billion euros in 2010 and increased to 340.2 billion euros, or 149% of GDP. According to the Audit Court's data, in 2009 the external debt was 298.5 billion euros or 127% of GDP. The Eurostat revaluation of public enterprises costs and their volume in the budget deficits accumulation as well as the effect of swap transactions in 2001 additionally increased the external debt by 23 billion euros and it reached almost 150% of GDP at the end of last year.  

The remaining 18.8 billion euros are the result of public enterprises and public administration debt payments through bonds and other securities. The Greek government has issued bonds worth 5.5 billion euros only in December. They had to meet the operating costs of organizations such as the national post, the agency for state grants control, the special guarantee fund for agricultural products and other numerous known and unknown state enterprises that have serious costs, but no clear functions.

Even more alarming is the fact that Greece has to pay back its investors 184 billion euros in the next five years. In other words, Mediterraneans have to meet 54.5% of their external debt by 2015. Interest and principal payments on old loans seem almost impossible at a time of dark forecasts for returning on the capital markets and when the country is not expected to have access to larger free funding by the end of 2013.
 
This fact makes it necessary to renegotiate the payment terms for the 110 billion aid from the International Monetary Fund, the European Central Bank and the European Commission of. Instead. The Greek government will try to extend the five years payment term to at least eleven years, following the Irish model without interest increase. Whether and how Germany and the other member creditors are willing to make another concession to Greece will become clear by the end of March this year when the final version and the scope of operation of the European fund for financial support will be presented.