Greece has an apparent economy, based on tourism at 18.8% of GDP and 28% together with all regional and seasonal professions and with an underground economy at 19% with 20% or 40 billion euros which means that it has no real production base.
The total public debt of the country reached 404.7 billion euros and will soon reach 410 billion euros! That is, if the economic and geopolitical circumstances are not favorable for Greek tourism, what will Greece do? What else does he have to generate revenue?
In 2009, the public debt of Greece amounted to 368 billion euros. The case of the public debt is a proof that Greece continues to be worse than ever as three memoranda and some bank recapitalizations have passed through the country and it is in the same and worse condition.
Greece carried out the infamous bond haircut when the Greek debt was 350 billion euros. Now the Greek debt has jumped to 404.7 billion with the prospect of reaching 410 billion euros.
The Greek Economy relies on accounting tricks where, due to the increase in GDP and inflation, the debt-to-GDP ratio decreases but the public debt continues to increase in absolute terms…
While the government bonds in circulation are at 85 billion and the loans of the Support Mechanisms are decreasing…. intra-government borrowing continues to rise to 52 billion – repos – even though it has been announced that repos can easily be reduced but they simply are not reduced…
Greece is increasing its debts to cover deficits and to present an alleged health in public finances. The bonds that are in circulation amount to 85.4 billion, of which 40 billion are owned by the ECB. In other words, the bonds held by banks and funds are 45 billion euros.
Interest-bearing bonds amount to 11.8 billion and remain stable, they are basically held by Greek banks and some foreigners. The loans of the ESM and EFSF Support Mechanisms amount to 234 billion euros
The repos, which is the intra-governmental borrowing of the public, amounts to 52 billion, the Greek government borrows for benefits and burdens the problem on the Greek society. A few benefit from the benefits, but society as a whole pays.
Some economists (so they call themselves) argue that as the denominator of the debt-to-GDP ratio increases…. no problem. These irrelevant, with the object of the economics, economists have destroyed Greece. The Greek public debt will soon reach 410 billion and the situation will deteriorate further… but the international community will give Greece an investment grade.
Obviously the Mitsotakis government is interested in governing without problems until 2030, then someone else will take over to govern the country and have the gigantic problem in their hands.
