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Without substantial debt relief Greece would default on its debt

Greece parliamentWithout substantial debt relief, Greece would default on its debt between 2021 and 2016, the parliamentary budget office warned.

In its quarterly review, the parliament body said that the cost of debt servicing between 2012 and 2016 will skyrocket to 84.3 billion euros.

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The parliament budget office said the short-term recovery prospects have improved, but the prospects for longer-term recovery are questionable as long as “basic rules and institutions remain unchanged.”

“The anticipated recovery may disappoint or could be paused if the reform program would not be implemented or extensive private sector investment would not take place.” It also viewed as “optimistic” the government’s estimates for GDP growth of 1.8% in 2017, taking into account the first half GDP data.

The office also warned over the continuing tax increases which were largely behind the fiscal adjustment and has expanded the recession.

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