Citi said on Thursday that the Greek debt restructuring debate is revived by the lack of significant progress on the fiscal adjustment and structural adjustment program in the country.
It states that further fiscal consolidation plans are very unlikely to restore market confidence in Greece but they also are unlikely to make a significant difference to the fiscal consolidation path.
“The severe economic recession and the lack of improvement in tax revenues suggest Greece may already be in the vicious spiral of too tight fiscal policy and too weak economic performance, where a write-off of part of the debt would be the only possible way out”, said Citi in a report.
It states that further fiscal consolidation plans are very unlikely to restore market confidence in Greece but they also are unlikely to make a significant difference to the fiscal consolidation path.
“The severe economic recession and the lack of improvement in tax revenues suggest Greece may already be in the vicious spiral of too tight fiscal policy and too weak economic performance, where a write-off of part of the debt would be the only possible way out”, said Citi in a report.
