Evans Chamberlain Asset Management - Greece Tests New Budget
Evans Chamberlain Asset Management says Greece could face confrontations with creditors if it deviates from budget plan promises.
TAIPEI CITY, Taiwan, October 3, 2018 (Newswire.com) - Evans Chamberlain Asset Management analysts say Greece may be in for a fight with its creditors and the financial markets after the government recently revealed a draft of its budget plan for next year. The draft budget lays out two possible situations for its budget plans and economic goals for 2019.
One of the proposed scenarios included pension cuts which Evans Chamberlain Asset Management analysts say are in keeping with the expectations of Greece’s creditors.
The second scenario excludes pension cuts but shows that Greece may be willing to alter budget reform plans that were previously agreed upon with its creditors.
Evans Chamberlain Asset Management analysts say the Greek pension cuts were supposed to begin in January next year and that the cuts were a sticking point in Greece’s budget plan negotiations with creditors. Any changes to pension cuts or other planned reforms could cause problems for Greece with the IMF and a range of other European institutions.
Evans Chamberlain Asset Management analysts say it is important that Greece come across as investor friendly and that next year’s pension cuts are a big part of the reforms agreed between the IMF and the Greek government.
Next year’s budget is the first in almost ten years where Greece will not be subject to a bailout scheme. Earlier this week, Greece pledged to adhere to financial targets that were agreed upon with its creditors, stating that it will deliver more than its targeted primary budget surplus.
In August of this year, Greece ended its third bailout program and is being held to strict financial targets over the next few years.
Source: Evans Chamberlain Asset Management