- Greek banks have been resilient, have maintained adequate capitalisation
- Convinced Greece has made significant accomplishments in 2010
- Wavering political support for reforms has increased uncertainty
- Since the end of 2010 implementation of reform process has lost momentum, country at crossroads
Kinda started OK and then went downhill somewhat…….
- Privatisation is crucial, asset sales should begin without delay
- Reforms need new energy, effectiveness
- Greece’s EU partners need to speak with one voice (that would be a first)
- Greek banks should increase further capital cushions
- Does not favour sovereign restructuring scenario
- Public sector needs to exit Greek banking system, consolidation necessary
- IMF, EU will continue supporting Greece if programme fully implemented
- Stretching out Greek payment terms is reasonable to think about
- Not sure that debt restructuring process can be easily controlled
- EU summit in June needs to crack some hard nuts, then IMF will be ready to disburse further tranche
Crikey, this chap’s enjoying his moment in the spotlight.
