Greece extends pandemic support as economy seen rebounding this year
Reuters
Published Sep 13, 2021 10:44
Updated Sep 13, 2021 12:10
ATHENS (Reuters) -Greece said on Monday it will pump more money into its economy to prop up businesses and households battered by the pandemic, as a stronger-than-expected growth forecast for the year gave it the fiscal leeway for a raft of relief measures.
Greece emerged from a decade-long financial crisis in 2018 but saw its economy slump again by 8.2% last year amid restrictions to curb the spread of COVID-19, which also hurt its vital tourism industry.
This year, the economy is set to rebound by 5.9%, higher than the 3.6% previously forecast, Prime Minister Kyriakos Mitsotakis said on Saturday, as he outlined a series of tax relief measures.
Finance Minister Christos Skaikouras on Monday said that projection was "absolutely realistic. It may even prove to be conservative".
The government would spend 4.4 billion euros in the second half of the year, bringing the total amount of pandemic support for 2020-2022 to 42.7 billion euros, Staikouras said.
Greece was also mulling its first issue of a green bond, Staikouras said, joining a number of European countries that have issued green debt to finance projects with environmental benefits.
He did not give a timeframe but a senior finance ministry official said it could take place in the second half of next year and "would have to incorporate mature projects before being issued".
Since exiting years of bailouts by the European Union and International Monetary Fund in 2018, Greece has relied solely on the markets for its financing needs. Staikouras said the government was considering an early repayment of loans to the IMF and to euro zone countries.
A finance ministry official said that could take place in 2021 or 2022.
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.