billion euros in 2013, as compared to 36.7 billion
euros in 2012.
Interest expenditure is expected to fall from 12.2
billion euros, or 6.3% of GDP, in 2012 to 6.1 bil-
lion euros, or 3.3% of GDP, in 2013.
This large drop in debt servicing costs is due to
the reduction of the public debt, following the
bond exchange programme of March 2012 and
the bond repurchases of December 2012, the
reduction of the interest rate spread on support
mechanism loans, as well as the postponement
of the payment of interest on the loans extended
by the EFSF.
The Crucial Year 2014
As far as the year 2014 is concerned, the main
concern of the government’s financial staff is:
●To ensure sustainable primary surpluses. This
will be achieved by strictly implementing rules
and practices pertaining to virtuous fiscal man-
agement and discipline.
●To rekindle the economy in 2014 and achieve
sustainable growth rates in the following years.
Sustainable growth will be based, on one hand,
on increasing investment and supporting
exports and, on the other hand, on maintaining
consumption at high levels, nonetheless ensur-
ing that it accounts for a much smaller portion
of the country’s GDP.
●To further enhance the long-term sustainability
of the public debt. The country must put the
brakes on the expansion of the public debt, and
reverse its momentum, both in absolute terms,
and as a percentage of GDP. This will be realized,
on one hand, by achieving sustainable primary
surpluses and strengthening growth-inducing
tools and, on the other hand, by securing our
partners’ help in alleviating the public debt – an
issue that remains open.
●To shape the conditions for the country’s exit to
the market.
Of course, this priority requires, to a great extent,
the successful conclusion of the aforementioned
objectives, since they will contribute to the cre-
ation of the appropriate climate.
Thus, capitalizing on the country’s very good fis-
cal performance, as well as the sanguine macro-
economic indications, the government is promot-
ing the design of financial techniques that will
enable Greece to return in international capital
markets within 2014.
Trade with Greece
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”
“
Of course, this priority
requires, to a great extent,
the successful conclusion
of the aforementioned
objectives, since they will
contribute to the creation
of the appropriate climate.
