'Virtuous circle' in economy

By Katerina Sokou

Poul Thomsen, the head of the International Monetary Fund’s mission to Greece, expressed on Tuesday confidence that the Greek economy will begin to recover this year, as the impressive fiscal adjustment and market confidence are creating «a virtuous circle."

Speaking in Washington, Thomsen added that certain measures due to expire this year will need to be extended to avoid any horizontal measures to cover the fiscal gap the IMF foresees for 2015 and 2016.

He also stressed that Greece may have one of the best debt repayment profiles after the last restructuring, but «any further extension of maturities will be welcome."

Thomsen further said the lightening of the debt the eurozone has promised does not necessarily mean a haircut, but that it could come in the form of interest rate reductions and profit transfers.