Debt-ravaged Greece ‘needs €50bn over three years to get back on its feet’

Greece needs €50bn over the next three years to stabilize its finances even under existing creditor plans, the IMF has said. In a new report, the International Monetary Fund acknowledged a huge deterioration in the country’s prospects in recent months. It slashed Greece’s 2015 economic growth forecast to 0%, from 2.5% forecast in April. Of the €50bn needed, €36bn must come from EU lenders, the IMF report said.

We are in something of an unknown. It’s up to the Greeks to respond.

French President Francois Hollande

The latest gloomy prediction comes ahead of a crucial weekend referendum which could decide whether the country falls out of the eurozone. For Greeks, particularly the elderly, the daily struggle to get cash ground on in the face of uncertainty. Greece’s rescue lenders have halted negotiations on a new financial aid program until after the vote on whether to accept reforms the creditors proposed last week in exchange for bailout loans. Greek Prime Minister Alexis Tsipras has staunchly advocated a “no,” saying it would put the country in a stronger negotiating position with creditors.

Very significant changes in policies and in the outlook since early this year have resulted in a substantial increase in financing needs

The International Monetary Fund

World Greece