IMF says Greek debt sustainable medium-term, long-term uncertain

Eurozone debt relief for Greece has made its huge public debt sustainable over the medium term, but optimistic assumptions on Greek growth and primary surplus well into the future are making debt sustainability uncertain in the long-term, the IMF said.

The International Monetary Fund published its debt sustainability analysis for Greece on Tuesday showing significant differences with the one that eurozone countries used to put together their debt relief offer for Athens in June.

"The debt relief recently agreed with Greece's European partners has significantly improved debt sustainability over the medium term, but longer-term prospects remain uncertain," the IMF report on Greece said.

"Staff is concerned, however, that this improvement in debt indicators can only be sustained over the long run under what appear to be very ambitious assumptions about GDP...