IMF doubts Greece's ability to fix economy: report

7th January 2012, Comments 0 comments

The International Monetary Fund has growing doubts about Greece's long-term ability to reduce its debts, German news magazine Der Spiegel reported Saturday.

According to an IMF note obtained by the magazine, Greece must accelerate consolidation of public debts or else private creditors will see smaller and smaller returns.

The IMF also envisions greater participation from eurozone countries in saving Greece.

Greece, with a population of just 12 million, is over 350 billion euros ($448 billion) in debt and facing its fifth straight year of recession.

The IMF slammed a lack of reforms in the country, saying tax revenues and money from a privatisation drive were lower than expected.

Greece is expected to register a 5.5 percent contraction of its gross domestic product (GDP) in 2011.

The country has been allocated two bailouts totalling 240 billion euros ($314 billion) -- including 30 billion to recapitalise banks -- and has so far drawn 73 billion euros from that total.

© 2012 AFP

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