• Missing fiscal targets, reform delays, GDP fall have undercut previous debt sustainability assessment; October 26 debt deal is country’s “last opportunity”
• Greece must choose between “uncontrolled downward trajectory” outside euro zone or “all-out effort” to fix economy within euro
• New govt must restore confidence, urges political parties to cooperate more than they have so far
• Sees Greek economy shrinking by 5.5% or more in 2011, by 2.8% in 2012, GDP to grow by up to 1% in 2013
• Forecasts unemployment rate will hit nearly 17% in 2011, may exceed 18% in 2012
• Greek economy will regain in 2010-2012 three fifths of the cost competitiveness it has lost in 2001-2009
• Banks must merge into bigger entities, may have to boost capital after ongoing checks on their loan portfolios are completed
• Central bank has provided exceptional funding to banks since August to compensate for deposit withdrawals, decline in collateral value
• Country must “at all costs” create priomary market budget surpluses, speed up economic recovery