Athens : The EU and IMF heaped pressure on Greece, warning of the perilous state of the country’s finances, days ahead of a controversial referendum that could determine its future in the eurozone.
As Greece’s leftist leaders staked their political lives on the outcome of Sunday’s vote, the International Monetary Fund warned the country’s growth prospects had deteriorated dramatically since the Syriza party came to power in
January.
The Washington-based lender slashed its forecast for Greece’s growth this year to zero, from 2.5 per cent, and warned it will need at least an additional 50 billion euros to stabilise its finances over the next three years.
The IMF — which along with the EU and ECB has lent Greece 240 billion euros since 2010 — also predicted any new bailout deal would rely more on Europe’s largesse, including 36 billion euros from Brussels.
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Referendum could go either way
The brief but intense campaign in Greece’s critical bailout referendum ends today, with simultaneous rallies in Athens for “Yes” and “No” supporters in what an opinion poll shows will be a very close race.
The poll published in To Ethnos newspaper showed the “Yes” campaign slightly in the lead but well within the margin of error. It also showed an overwhelming majority — 74 per cent — want the country to remain in Europe’s joint currency, the euro, compared to 15 per cent who want a national currency.
Prime Minister Alexis Tsipras called the referendum last weekend, asking Greeks to decide whether they should accept creditor reform proposals in return for vitally needed bailout funds. He is advocating a “No” vote on Sunday.
The “Yes” campaign says the referendum is in fact a vote on whether Greece wants to remain in the euro and in Europe. The government rejects this as scaremongering, saying a “No” vote will put it in a better bargaining position and will not lead Greece to leave the eurozone.
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