IMF Sees Fiscal Gap for Greece, Pension Cuts Might Come Sooner
The International Monetary Fund foresees a fiscal gap of 2.3 billion euros in the 2018 budget, which might mean that the pension cuts scheduled for January 1st, 2019 will be implemented earlier.
Greek finance ministry sources downplay the IMF forecast claiming that all previous predictions by the Fund, have been overly pessimistic. However, the IMF forecast might delay the third review of the bailout program, which has to be completed by the end of the year. This generates uncertainty among pensioners who might see their pensions slashed earlier than anticipated.
Average main pension at 480 euros by 2021
Currently, one in two of the 2,650,000 Greek pensioners gets under 660 euros after taxes. By 2021, the average main pension will be 480 euros, according to Professor Emeritus at Panteion University, Savvas Rombolis.
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