According to the EU data released today, the actual Greece’s 2010 budget deficit exceeded the forecast level. Greek shortfall rose to 10.5% of GDP, while the European Commission was looking forward only to 9.6% figure. The nation’s debt surged to 142.8% of GDP that’s above 140.2% estimate.
Despite the fact that a year ago the EU and the IMF provided Greece with 110 billion euro ($160 billion) bailout, the country keeps struggling to raise its revenue as its economy’s contracting.
Greek bond yields remain at the maximal levels – 2-year yields reached at 21.87%, while 10-year hit 15.18%.
Most economists think that the country will eventually have to restructure its debt either by extending the maturity or even by lowering the total amount of obligations.
Analysts at BNP Paribas think that Greece will need either a new loan from the EU/IMF or primary market bond purchases by the EFSF. The specialists are sure that the country won’t be able to fund itself in the markets in first quarter of 2012.
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