BoG: 'Reduce debt or face 4th bailout'

The annual Bank of Greece report published on Friday stresses the immediate need for a change in the fiscal policy mix to make it more growth-friendly, while bringing down its growth expectations for 2017 from 2.5 percent to 1.6 percent. Crucially it warns that a fourth bailout might be necessary if the country's debt is not sufficiently reduced.

The report signed by central bank chief Yannis Stournaras attributes the downward revision of economic performance to the "great delay in the completion of the second bailout review and the ensuing surge of uncertainty that has created a considerable decline in investments. This, combined with the great increase in the tax burden, has weakened the original forecast."

Despite the deterioration in forecasts for 2017 the midterm prospects for growth remain positive, but only provided that the implementation of reforms is...