Fears of Greek eurozone exit grow

This comes after inspectors from the International Monetary Fund (IMF), the European Commission and the European Central Bank (ECB) — together known as the troika — returned to Athens on Tuesday to grill the Greek government about the implementation of unpopular austerity measures.

The officials said that Greece has fallen short of what it had promised to do in order to secure fresh loans of 31.5 billion euros ($38 billion) by September.

“Greece is hugely off track,” one of the officials told Reuters on the condition of anonymity. “The debt-sustainability analysis will be pretty terrible,” the official added.

Greece has been at the epicenter of the eurozone debt crisis and is experiencing one of its worst recessions.

“Nothing has been done in Greece for the past three or four months,” said another official, referring to the delays caused by the two parliamentary elections held since May.

“The situation just goes from bad to worse, and with it the debt ratio,” said the official, pointing to the latest growth estimates showing that the Greek economy will contract by seven percent this year, rather than the previous forecast of five percent.

The comments have caused fears over a possible exit of Greece from the single-currency bloc. Greece has been forced to push ahead with back-breaking austerity measures to bring down its debt.

Greek Prime Minister Antonis Samara said on Tuesday that the primary goal of his government “is to stop the recession and start with recovery” as unemployment nears 24 percent.

The prime minister criticized foreign officials who predict that Greece will not be able to stay in the euro currency bloc and called their comments “irresponsible.”

“They undermine Greek efforts. We do what we can to get the country back on its feet and they do what they can for us to fail,” he added.

DB/MA/HJL

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