European debt crisis

The cost of money is refusing to drop at any significant pace in Greece as borrowing remains stubbornly high for local enterprises and households in the face of low interest rates in the eurozone.

Small and medium-sized enterprises and the few households that are able to secure bank credit are burdened with rates that are twice the eurozone average.

First, the good news: The government is on a mission to brief our eurozone partners, the other European Union members and our creditors on its plans to boost growth and its intentions to fast-forward long-stagnant reforms by cutting back on excessive spending and pushing privatizations, and then, and only then, present its demands.

Greece may be saddled with heavy debt, but a lot of it involves loans provided on very favorable terms. Moreover, the continuing sharp decline in bond yields makes further borrowing an attractive proposition.

Domestic and international conditions seem ideal for the still embattled Greek economy and epecially for the private sector which has been struggling for years.

The European Commission on Friday announced a decision to extend for an additional six months the enhanced surveillance mechanism agreed with Greece following the country's bailout exit last summer.

Greece's credit profile is constrained by the country's elevated debt burden, moderate growth prospects and weak banking system, Moody's Investors Service said in an annual report Thursday, adding that the new government's implementation of reforms agreed with lenders would bolster growth.

Senior officials from Greece's bailout creditor institutions were meeting in Athens with the country's new conservative government following general elections this month.

Greece will meet this year the budget targets agreed with its international lenders, a finance ministry official said on Monday.
Asked if Greece would achieve its 3.5 percent of GDP primary budget surplus target this year, the official said: "I don't see a fiscal gap in 2019."

The European Commission (EC) keeps its expectations for Bulgaria's economy in its summer forecast. The GDP growth of our country in 2019 will recover to 3.3% from 3.1% in 2018, reaching 3.4% in 2020, coinciding with the expectations of the spring forecast.

In terms of inflation, the EC expects its pace to reach 2.4% in 2019 and will slow to 1.7% in 2020, writes Investor.bg.

Greece will implement a series of reforms which are in line with what has been agreed with its creditors, government sources said Wednesday, responding to a comment by German Chancellor Angela Merkel.
Speaking at a news conference with Finland's prime minister, Merkel said she agreed with eurozone finance ministers that no change was needed to Greece's bailout program.