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Greece: Selected Issues

Author(s):
International Monetary Fund
Published Date:
December 1999
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V. Improving Information on Risk and Sustainability of Fiscal Policy33

86. Given the need for a sustainably sound fiscal position under the Stability and Growth Pact (SGP), assessment of short- and long-term risks that may affect the fiscal outcome and the medium- and long-term sustainability of the fiscal position are being increasingly emphasized.34 This paper explores three aspects of fiscal risk and sustainability in Greece: (i) the accounting and statistical framework, where it advocates developing a balance sheet approach to the government’s operations; (ii) fiscal risks and sustainability in the annual budget and the medium term; and (iii) long-term fiscal sustainability. The suggestions are of a preliminary nature and considerable further work would be needed to put them fully into practice in Greece, but the framework is a logical extension of the reforms already underway.

A. The Accounting and Statistical Framework

87. Most EU countries, including Greece, are considering some form of accrual basis accounting for government35 and all accept the accrual basis system of national accounts and fiscal reporting embodied in the European System of Accounts, 1995 (ESA95). With respect to accrual basis government accounting, the pace of reform varies considerably among EU countries. EU reporting rules require only that the accounting systems be capable of generating accrual information that meets EUROSTAT standards for fiscal reports. The accounting system in Greece, like many other EU members, reports on a modified cash basis, but also provides accrual information to make the necessary adjustments for EU reporting. The Greek system also identifies and reports on arrears in tax receipts or expenditure payments.

88. There are several reasons why moving beyond these basic standards in the near future could be usefully considered in Greece. The present government budget and accounting system, though adequate for reporting on operations, debt, and contingent liabilities of central government institutions, is of limited usefulness in addressing broader public sector structural issues that are likely to have a strong fiscal impact in the future. In addition to the high government debt ratio (some of which arises from the assumption of public enterprise debt) and stock of outstanding government guarantees, Greece has the highest level of unfunded pension liabilities in the OECD and significant debt accumulated by loss-making public enterprises. On the other hand, Greece has a substantial stock of public enterprise assets and can anticipate a relatively high level of proceeds from privatization—especially if the privatization program were to be expanded to include majority sales of public utilities.

89. Substantial benefits should be gained by improving the analysis of the fiscal implications of measures affecting the social security and public enterprise sector. In principle, the stock and all changes in these assets and liabilities of government should be registered in the accounting system and government financial statements. One key step toward this goal in Greece would be the development of a more comprehensive government balance sheet providing a coherent oversight of all of the government’s financial assets and liabilities.36 In this respect, it is recognized that a number of weaknesses in statistical compilation have to be overcome. Notably, data for noncentral government (particularly supplementary social security funds) are not timely, and priority has not yet been given to compilation of government balance sheet data. However, balance sheet information of public enterprises and social security funds is submitted to the National Statistical Service of Greece (NSSG). Such an effort could thus be relatively easily initiated and progressively improved.

90. A more comprehensive government balance sheet (see Box 1), incorporating government equity in public enterprises and giving recognition in some form to unfunded liabilities of the social security funds, would convey to the public and to the financial markets a better perspective on the linkages between the structural and fiscal policy issues that have to be faced. The balance sheet should be more than a mere summary of financial assets and liabilities. It covers important strategic concerns, and should accordingly be accompanied by substantive analytical statements. A comprehensive balance sheet provides an important basis for examination of long-term sustainability (see Section C below). Equally importantly, an annual government balance sheet imposes discipline on year-to-year operational decisions and helps to provide assurance that consequences of policy actions are brought to account.

Box 1.A Balance Sheet Approach for Government

Associated with moves to accrual basis accounting, governments are increasingly adopting a balance sheet approach to fiscal management. The standard budget presentation focuses on annual transaction flows and does not completely address issues of asset/liability valuation nor provide a comprehensive framework for assessing fiscal stocks. Recent or emerging fiscal reporting standards, such as the draft Government Finance Statistics (GFS)1 and the European System of Accounts (ESA95), embody a balance sheet as an integral part of the analytical framework. Inclusion of a balance sheet in government budgeting and accounting operations should enable a more comprehensive and strategic overview of fiscal policy and allow government decisions on assets and liabilities to be more effectively monitored.

A government balance sheet, however, is very different from that of a commercial enterprise and governments differ widely in their interpretation of what assets and liabilities should be included in the balance sheet. International standards are being developed in this area,2 but, even in the absence of agreed standards, some basic principles are widely accepted. The treatment of the issues and the advantages of a balance sheet approach are well described in U.S. budget and accounting documents.3 The U.S. government balance sheet approach aims to provide comprehensive information on assets and liabilities of government. Because of the nature of government, however, the statement makes important distinctions among the types of assets and liabilities held. It also extends the analytical framework beyond the timeframe of a conventional balance sheet to include (in separate but linked analytical tables) broader government powers for tax and spending (and implicit assets and liabilities) in the future.

The U.S. approach thus includes a conventional presentation of market-related assets and liabilities of government in the annual financial report (including memoranda on contingencies and commitments). A separate section of the report, however, provides “stewardship information” on various assets and obligations of government that, for various reasons, including valuation issues or nonrecognition of liability (as a matter of accounting policy), are not incorporated in the statement of assets and liabilities. Defense assets, natural assets, and heritage assets, as well as estimates of social security obligations, are included in this section of the report. Also included as stewardship information is a “current services assessment” projecting government receipts and outlays on the basis of no change to present laws.

1See http://www.imf.org/external/pubs/ft/gfs/manual/index.htm2See International Federation of Accountants, 1998, Guideline for Government Financial Reporting: Exposure Draft (New York: Public Sector Committee, IFAC)3See United States: Analytical Perspectives, Budget of the U.S. Government, Fiscal Year 1999, and Financial Report of the United States Government, 1998.

91. A balance sheet approach could help to coordinate the various decisions being made about creation and disposal of public enterprise assets and government equity holdings. On the one hand, public assets are being created through the public investment budget, while on the other, assets are being sold, either directly by the government or through the operations of the public entity for the management of the state’s financial assets (DEKA). It would be important for these strategic issues to be addressed in the light of a consolidated view of their impact, and that the public and financial markets be given as complete information as possible on which to gauge the direction and effectiveness of public policy. One line of argument is that the rate of public capital accumulation is a primary determinant of GDP growth,37 and it is critical to maintain a high level of public capital formation. Other factors also need to be considered, however: particularly, the generally poor performance of public enterprises, the lack of competitiveness within the sectors dominated by public enterprises, and large potential gains to the economy from restructuring and deregulation of those sectors. The government’s strategy is to direct public investment to commercializing and strengthening public enterprises to allow subsequent deregulation in the sectors concerned or divestiture of assets. Incorporation of these assets in a government balance sheet and the establishment of appropriate methods for valuing them would contribute to an effective review mechanism for monitoring government policies toward public enterprises.

92. A subsidiary issue in the public investment program, that of “below-the-line” capital transfers to enterprises could also be partially resolved through a formalized balance sheet approach. Concern is frequently expressed that such transfers (amounting to about 1.5 percent of GDP each year), though accepted by EUROSTAT as asset transactions, implicitly involve a substantial element of government transfer expense and should, therefore, be added to the “real” deficit. The level of such transfers has been quite stable, giving no major concern with their impact on the current fiscal stance, in fiscal impulse terms. Such transactions, however, may provide an area where fiscal tightening could occur, and there could be concerns with the longer run impact of such transactions on the net financial worth of government.38 Annual valuation of enterprise assets would help to monitor the effectiveness of the transactions and establish more clearly any subsidy element that may be involved.

93. Similar considerations apply to the current treatment of contingent liabilities (mainly government guarantees) that are called. These also are treated below the line as an asset/liability transaction—at least implicitly, a loan to the entity offsets the liability assumed by the government. However, prima facie, the quality of the assets thus acquired are subject to some doubt. It would be highly desirable, therefore, that the analytical statement accompanying the balance sheet provide information on these assets and that the value of such assets be monitored carefully over time. Contingent liabilities also pose risks to the fiscal outcome and these aspects are discussed further below.

94. The operations of DEKA and the transactions carried out through this vehicle would best be considered in the context of the government’s overall strategy toward public enterprises. The government has an option whether or not to use DEKA for privatization, and so any examination of privatization necessarily involves looking at both direct government activities and those carried out by DEKA. Effective policy review would require, therefore, not only that government equity in DEKA be shown in the government balance sheet, but that an analytical statement covering all privatization operations and the extent to which these are carried out by DEKA be included in the annual financial statements of government.39 The annual budget report description of privatization activities should also cover those to be carried out through DEKA.

B. Fiscal Risks in the Annual Budget and Medium Term

95. Fiscal decisions and presentation of fiscal information are usefully considered in three time frames: the annual budget, the medium term (which here is taken to cover the annual budget plus two subsequent years, but in some countries may include up to four outyears), and the long term (which, for some purposes, may cover around 50 years). The focus of budget analysis naturally differs significantly among these time horizons. At one extreme, the annual budget, as a legal authority to spend, should make the most precise statements about revenue and expenditures—but it should also recognize that a variety of factors can affect these estimates and indicate their reliability. At the other extreme, long-term fiscal scenarios necessarily rely on a variety of assumptions about factors that can vary widely over that time period. Such scenarios do, however, allow investigation of demographic and other trends that will have to be taken into account in government’s long-term policies.

96. Medium-term formulation of budget policies provides a crucial link between the annual budget and long-term policies. Medium-term budget frameworks are becoming central elements of budget presentation in many OECD countries. As noted, in the context of the European Union, the elements of such a framework are a requirement under the SGP.40 This section examines possible information improvements that could help enhance the Greek budget framework for annual budget and medium-term convergence/stability program needs. The final section looks at long-term fiscal sustainability issues in Greece.

Toward a statement of fiscal risk

97. Greek budget documents already incorporate information on risks that could affect the annual budget outcome (for instance, with respect to government guarantees) and they describe the basic macroeconomic assumptions underlying the budget estimates. Further development of the analysis and budget presentation in a consolidated statement of fiscal risks should be relatively straightforward—and production of such a statement will show the public and financial markets how these risks have been taken into account in budget decisions. Incorporation of some of the following elements could be considered.

Effectiveness of budget control and discipline

98. A number of improvements in budget control have been introduced on both the revenue and expenditure sides of the budget and these are contributing to an increased reliability of the budget estimates. Table 1 shows variations between original budget estimates and final outcomes (the data are from the budget prior to national accounts adjustments and so may not correspond to national accounts presentations). Between 1996 and 1998 the deviation from budget of both the overall and primary balances have declined as a percentage of GDP. A major factor in improving performance has been more effective revenue collection, particularly of direct taxes. Government consumption expenditure has been limited in real terms and more rigorous analysis and controls introduced for grants to public and private sector agencies.

Table 1.Central Government Budget Execution: Deviation from Budget(In billions of dollars)
199619971998
BudgetOutcome% changeBudgetOutcome% changeBudgetEstimate% change
Revenue
Current7,7107,384-4.28,7158,467-2.89,3769,5281.6
Of which: Direct2,4152,316-4.12,7902,767-0.83,1113,58715.3
Indirect4,4664,230-5.35,0144,834-3.65,3975,241-2.9
Capital600568-5.3817719-12.08909132.6
Expenditure
Primary current6,1026,1470.76,7576,8481.37,2047,4343.2
Capital1,3641,274-6.61,6661,626-2.42,0051,881-6.2
Interest3,3553,5014.43,4683,216-7.33,2203,2330.4
Overall balance-2,512-2,97018.3-2,359-2,5046.1-2,163-2,107-2.6
change (% GDP)-1.5-0.40.2
Primary balance844531-37.01,109712-35.81,0571,1266.5
change (% GDP)-1.1-1.20.2
GDP29,12829,6972.032,69332,7520.235,46135,6770.6
Source: Ministry of Finance General Accounting Office.
Source: Ministry of Finance General Accounting Office.

Government guarantees

99. In the past, widespread use of guarantees had led to an estimated accumulated Dr 2,332 billion (7.9 percent of GDP) in outstanding contingent liabilities from guarantees by end-1996. Issuance of guarantees reached a high of 6 percent of GDP in 1989. Since 1995, however, issuance of guarantees has been controlled to a level no greater than 3 percent of budget appropriations—and, from that time, the issuance of guarantees has declined as a proportion of GDP from 1.3 percent in 1995 to 0.6 percent in 1998. Government policy now is that guarantees be used only for facilitating major infrastructure projects and for enterprise investment capital with a reasonable prospect of earning a return—usually these are issued for EU loans that require sovereign guarantees.

100. Outstanding contingent liabilities from guarantees have declined to Dr 2,144 billion (6.5 percent of GDP) in 1997, and Dr 1,966 billion (5.5 percent of GDP) in 1998. Called guarantees amounted to Dr 111 billion in 1998.

Other contingent liabilities

101. Privatization and use of private sector financing initiatives for financing infrastructure often give rise to contingent liabilities by way of indemnities or guarantees to the purchaser of assets or provider of infrastructure. The authorities indicate that no contractual contingent liabilities arise from privatization—which is largely implemented by restructuring enterprises, listing on the stock market, and selling through market mechanisms. It would be appropriate, however, for a unit of the General Accounting Office of the Ministry of Finance to maintain records of all forms of legal liability and for such contingent claims to be declared in a statement of fiscal risks.

102. Some liabilities arise because government is assumed to have an implicit obligation. Several cases have occurred where the government has assumed the debt of third parties without a formal guarantee agreement. In addition to the financial rehabilitation loans referred to above, the government has issued debt to increase share capital of banks or other entities (e.g., National Bank for Industrial Development-ETBA, and Hellenic Postal Service-ELTA); it has also issued special loans for the purpose of settling accounts related to advance payments by the public sector and the exchange rate differentials account maintained by the Bank of Greece (Dr 3,980 billion outstanding as at end-1998). Many of these outstanding loans also embody an element of capitalized interest.

Variation of economic assumptions

103. Changes in the economic environment are another major element of risk that may affect both the annual budget and the medium-term budget estimates and it is becoming standard practice for these elements to be explained in budget presentations (see Box 2). Risks to the annual budget tend to be in somewhat sharper focus than those for the medium term; but it is important to ensure that due emphasis is given to implications beyond the budget year, so as to ensure compliance with the requirements of the SGP and long-term debt reduction in subsequent years.

104. For purposes of illustration, estimates of the sensitivity of estimates of primary and overall balances as a percent of GDP to changes in assumptions regarding the rate of GDP growth and interest rates are shown in Table 2. The estimates of sensitivity consider only a single parameter change in each case and do not consider policy adjustments that may be taken in response to such changes. A 1 percent increase in the assumed growth rate, other things remaining the same, would have a favorable impact on primary and overall balances of the order of 0.3–0.4 percent of GDP each year of the projected period. This effect occurs mainly because it is assumed that primary expenditures would remain unchanged from the original budget projections. On the other hand, an assumed 1 percent increase in interest rates, which would impact the debt held as floating rate bonds or treasury bills, would cause a deterioration in the overall balance of around 0.4 percent of GDP each year of the projection.

Table 2.Greece: General Government Sensitivity Analysis 1/
19981999200020012002
(Percent of GDP)
Baseline
Current revenues39.339.639.238.938.6
Current expenditures40.039.438.837.737.2
Primary expenditures30.930.731.131.131.1
Interest payments9.18.77.76.66.1
Net capital spending1.71.92.02.22.2
Net capital transfers-2.0-2.1-2.1-2.2-2.1
Gross capital formation3.73.94.14.34.3
Saving1.32.22.63.43.6
Primary balance6.77.06.15.75.3
Overall balance-2.4-1.7-1.5-1.0-0.8
Growth rate + 1 percent
Current revenues39.339.639.238.938.5
Current expenditures40.039.438.336.936.0
Primary expenditures30.930.730.830.430.1
Interest payments9.18.77.66.55.9
Net capital spending1.71.92.02.12.1
Net capital transfers-2.0-2.1-2.1-2.1-2.1
Gross capital formation3.73.94.14.24.2
Saving1.32.23.04.14.6
Primary balance6.77.06.56.36.3
Overall balance-2.4-1.7-1.1-0.10.4
Interest rate + 1 percent
Current revenues39.339.639.238.938.6
Current expenditures40.039.439.238.137.6
Primary expenditures30.930.731.131.131.1
Interest payments9.18.78.17.06.5
Net capital spending1.71.92.02.22.2
Net capital transfers-2.0-2.1-2.1-2.2-2.1
Gross capital formation3.73.94.14.34.3
Saving1.32.22.23.03.2
Primary balance6.77.06.15.75.3
Overall balance-2.4-1.7-1.9-1.4-1.2
Source: Staff calculations.

Alternate scenarios are assumed to apply from January 1, 2000.

Source: Staff calculations.

Alternate scenarios are assumed to apply from January 1, 2000.

Box 2.Uncertainty, Sensitivity, and Fiscal Risks

Annual budget estimates (and even more so, medium-term budget plans) are forecasts, many elements of which depend on assumptions about economic trends. Changes in key economic parameters will thus change a number of elements of the budget and are likely to affect the planned fiscal balance.

Sensitivity analysis: It is becoming increasingly common in OECD countries for budget documents to address explicitly the degree of uncertainty associated with the underlying economic assumptions and give a quantitative estimate of the sensitivity of budget aggregates to changes in key assumptions. Australia and the United States provide examples of non-EU countries that regularly produce an analysis of the sensitivity of fiscal aggregates to economic changes and an estimate of risk that the fiscal outcome could differ from the budget estimates. As noted in the text, such effects are expected to be included in country presentations of stability and convergence programs in the EU. In all cases, it is important to distinguish between those changes that are temporary and those that may be sustained for several years.

Cyclical factors: A particular issue under the SGP is the need to provide assurance that the budgetary positions of member states provide a sufficient safety margin for them to deal with the effects of “normal” cyclical fluctuations without breaching the 3 percent of GDP reference value for the overall deficit.1 Estimating the position in the cycle for individual economies is subject to considerable uncertainty, and possible misspecification gives rise to a risk of significant effects on fiscal balances over the medium term.2

Economic risks: As well as risks that the fiscal balance will be changed by economic events, there are risks that unforeseen economic events will require discretionary changes in fiscal policy during the year—or over the medium term. In most budget presentations, such factors are considered within a general discussion of the economic background to the budget. In the context of EMU, however, fiscal policy, combined with flexible market adjustments, will bear the burden of individual country adjustment should economic conditions differ from the Euro-area average. An important element of fiscal risk assessment in EMU therefore is to assess whether there is any likelihood of divergence and to examine the possible roles of fiscal and other policies in response to such divergence.

1 See European Commission, 1999 (op cit), which estimates benchmark structural deficits for member states that would provide assurance that this goal could be achieved2 See, for instance, “Risks in estimating the cycle” in Chapter 5 of the United Kingdom Convergence Programme, 1998.

Improved planning and risk mitigation measures

105. The government is taking a number of measures to improve planning and adaptation of policies to handle budget risks. Further developments could be beneficial in several areas.

  • Article 18 of the Law Regarding Public Accounting, Auditing of Government Expenditures and Other Regulations (2362 \1995) allows a reserve fund, which is a special appropriation in the annual budget to cover emergency expenditures not covered in departmental appropriations. The reserve fund appropriation has been around 0.3 percent of GDP in recent years, but is to be discontinued from FY 2000. For the most part, contingencies that have been called have been met by off-budget balance sheet operations. Variations in revenue or expenditure requirements during the year have been covered by supplementary provisions or reserves, when additional resources were available, or by cutbacks—largely on capital spending—in the years when revenue was well below expectations or to compensate for overruns in current spending.
  • Policies are being established that will help limit liability for claims without formal guarantee. Privatization programs in the banking sector, the restructuring of some of the more problematic state-owned banks, accompanied by continued strengthening of bank supervision by the Bank of Greece, should help to insulate government from future claims from this sector. Extension of the privatization program to all key sectors should help limit future claims on the public purse.
  • In line with the rolling convergence (and eventually stability) program targets, initial steps are under consideration to establish a formal process of forward estimates that would be integrated with the budget. Under such a scheme, the budget presentation would give estimates for all general government revenue and expenditure proposals for the budget year and two forward years—and this would help to clearly identify future policies and their costs and potential risks. This practice would be consistent with that of many other EU member countries. Maintenance of rolling forward estimates covering both ordinary and investment budgets by all government ministries and budget-dependent public entities would be a key element of this proposal41

C. Long-term Fiscal Sustainability

106. An exploration of long-term fiscal scenarios provides a means to explore the impact of demographic and other structural changes that will affect the economy and fiscal position over an extended time period. Though such forecasts can be at best a rough guide to future events, they highlight major choices that need to be made—and the necessity to initiate appropriate action in the near and medium-term. For Greece, it is clear that a number of major structural changes will have to be considered to achieve the goals of continued reduction of the debt/GDP ratio, maintenance of stability, and strong economic growth over the long term.

107. One option for reducing the debt/GDP ratio toward the Maastricht limit is to maintain a high primary surplus, such as that set in the convergence program for 2000–01, for a prolonged period. Maintaining such a surplus, however, will become increasingly difficult as demographic forces increase the social security funds’ deficit. OECD projections suggest that this effect will become increasingly prominent from around 2005 and that the deficit from this source will increase progressively from around 4.5 percent of GDP in 1997 to about 14 percent of GDP by 2050.42 Tackling social security reforms is undoubtedly central to the issue of long-term sustainability and, as noted in a recent report to the government,43 there is a limited window of opportunity for this work to be substantively tackled.

108. Economic restructuring provides another option for improving long-term fiscal sustainability. In conjunction with maintenance of a strong fiscal position, debt can, of course, be reduced directly by using privatization receipts. Greece is following this course.44 A sustained program of privatization accompanied by efforts to deregulate and improve competitiveness of the enterprise sector (particularly of utilities) would also make a major contribution by spurring GDP growth and reducing pressure on the budget for enterprise subsidies. The OECD estimates that the cumulative output gain of a comprehensive restructuring and deregulation of the sectors dominated by public enterprises, including second round effects in other sectors, would be of the order of 9–11 percent of GDP, while such reforms would also exert an appreciable downward impact on the aggregate price level.45

109. A demonstration of the sustainability of fiscal policy would need to take all of these factors into account. Periodic assessment of long-term policy options could be undertaken by developing a long-term aggregate model. This could be used initially to generate long-term baseline fiscal forecasts showing expected trends in economic and fiscal aggregates, the overall and primary balances, and ratio of debt to GDP, given continuation of present policies on tax, primary budget expenditure, social security funds, and including conservative assumptions on anticipated receipt and disposition of proceeds from privatization.

110. The model could then be used to simulate the impact of different policy assumptions or to assess the magnitude of change required to meet agreed policy goals. One issue to be addressed is the level of sophistication of modeling that is required. Relatively simple baseline simulations would indicate the magnitude of the problems to be faced. Examination of policy alternatives would require more detailed data and analysis of the options in, for example, the social security and public enterprise sectors, so more complex modeling and analysis would likely be required in these areas. Upgrading of the public sector statistical collection and compilation would also be essential. Improved data on public enterprise balance sheets, for instance, would be needed both to develop a balance sheet approach to government decisions (as discussed earlier) and to provide reliable data for modeling medium- and long-term policy options.

111. A comprehensive analysis of options and decisions along the above lines could be undertaken to set the basis for sustainable fiscal policy in Greece over the long term. Such studies could be done periodically, say every four or five years, and a summary of the results released with the Budget Report and stability programs as evidence of fiscal sustainability.

112. Production of periodic reports along the above lines could help address the inherent “tragedy of the commons” problem that tends to inhibit reform in many countries. Various social groups see themselves as potential losers from reform and argue that the costs of adjustment be borne elsewhere—and governments, because of their limited term of office, have an incentive to address issues in a way that satisfies short-term objectives of politically influential groups. Effective policy review of these matters requires that a program extending beyond the life of any one government be proposed as a firm guide to policy choices. In part, this is a vehicle for educating the public at large on the choices that have to be confronted. A formal document defining these long-term choices can be developed as a tool for negotiations with various interest groups and as a binding basis for long-term strategic decisions.46

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STATISTICAL APPENDIX
Table 1.Greece: Aggregate Demand(At constant prices of the previous year)
199319941995199619971998

Prel.
Gross domestic product at market prices-1.62.02.12.43.23.7
Consumption-0.31.53.11.82.11.6
Private-0.82.02.71.92.51.8
Government2.6-1.15.65.0-0.40.4
Gross fixed capital formation-3.3-1.07.811.110.79.8
Private-4.7-0.15.812.411.78.4
Public1.4-4.014.37.47.513.7
Construction-6.0-4.31.77.19.810.2
Equipment0.6-0.38.411.59.39.1
Change in stocks (in percent of GDP)-0.30.10.70.10.00.3
Total domestic demand-0.91.23.92.93.43.3
Foreign balance (in percent of GDP)-10.3-10.9-13.4-14.1-14.4-14.0
Exports of goods and NFS-3.36.60.53.05.39.2
Imports of goods and NFS0.21.39.24.95.45.7
Contributions to growth
Gross domestic product at market prices-1.62.02.12.43.23.7
Consumption-0.21.32.81.61.81.4
Private-0.61.52.01.41.91.3
Government0.4-0.20.80.2-0.10.1
Gross fixed capital formation-0.7-0.60.81.61.92.0
Private-0.8-0.30.31.31.51.2
Public0.1-0.20.50.30.40.7
Total domestic demand-1.01.34.23.23.73.6
Foreign balance-0.60.7-2.1-0.8-0.50.0
Exports of goods and NFS-0.61.00.10.50.81.4
Imports of goods and NFS-0.1-0.3-2.2-1.2-1.3-1.4
Sources: Ministry of National Economy; and Fund staff calculations.
Sources: Ministry of National Economy; and Fund staff calculations.
Table 2.Greece: Aggregate Demand
199319941995199619971998

Prel.
(In billions of drachmas; at current prices)
Gross domestic product at market prices21,135.723,983.426,883.529,697.732,752.235,677.3
Consumption18,964.221,357.524,317.126,552.228,883.330,843.8
Private15,900.918,012.120,138.822,219.624,045.325,628.6
Government3,063.33,345.44,178.34,332.64,838.05,215.2
Gross domestic investment4,191.64,479.15,023.35,748.26,579.17,773.3
Gross fixed capital formation4,267.14,453.34,981.15,728.76,563.77,674.2
Private3,186.83,335.53,646.94,227.14,873.25,626.6
Public1,080.31,117.81,334.21,501.61,690.52,047.6
Change in stocks-75.525.842.219.515.499.1
Total domestic demand23,155.825,836.629,340.432,300.435,462.438,617.1
Foreign balance-2,020.1-1,853.2-2,456.9-2,602.7-2,710.2-2,939.8
Exports of goods and NFS3,355.53,904.04,258.24,697.85,143.75,846.7
Imports of goods and NFS5,375.65,757.26,715.17,300.57,853.98,786.5
Net factor income from abroad137.8212.1242.4197.7189.5130.0
GNP at market prices21,273.524,195.527,125.929,895.432,941.735,807.3
Depreciation1,847.72,117.22,409.12,770.73,174.53,425.0
NNP at market prices19,425.822,078.324,716.827,124.729,767.232,382.3
Indirect taxes less subsidies2,310.12,596.32,969.53,337.93,916.94,249.5
NNP at factor cost17,115.719,482.021,747.323,786.825,850.328,132.8
(In percent of GDP)
Consumption89.789.190.589.488.286.5
Private75.275.174.974.873.471.8
Gross fixed capital formation20.218.618.519.320.021.5
Private15.113.913.614.214.915.8
Foreign balance-9.6-7.7-9.1-8.8-8.3-8.2
Exports of goods and NFS15.916.315.815.815.716.4
Imports of goods and NFS25.424.025.024.624.024.6
Source: Ministry of National Economy.
Source: Ministry of National Economy.
Table 3.Greece: Private Sector Income Account 1/(In billions of drachmas; at current prices; percentage changes in parentheses)
199319941995199619971998

Prel.
Compensation of employees6,763.47,635.58,801.510,033.811,191.512,008.5
(12.3)(12.9)(15.3)(14.0)(11.5)(7.3)
Nonlabor income, net12,397.714,314.015,265.215,998.216,350.817,853.4
(14.4)(15.5)(6.6)(4.8)(2.2)(9.2)
Current transfers received4,020.24,624.75,308.35,752.06,239.76,877.5
(14.4)(15.0)(14.8)(8.4)(8.5)(10.2)
Direct taxes1,218.41,643.61,971.42,103.02,451.52,941.8
(18.8)(34.9)(19.9)(6.7)(16.6)(20.0)
Current transfers paid2,557.32,950.03,382.03,761.34,124.34,536.7
(22.6)(15.4)(14.6)(11.2)(9.7)(10.0)
Disposable income19,405.621,980.624,021.625,919.727,206.229,260.9
(12.4)(13.3)(9.3)(7.9)(5.0)(7.6)
Private consumption15,900.918,012.120,138.822,219.624,045.325,628.6
Private saving3,504.73,968.53,882.83,700.13,160.93,632.3
Private saving rate18.118.116.214.311.612.4
Source: Ministry of National Economy.

Including public enterprises.

Source: Ministry of National Economy.

Including public enterprises.

Table 4.Greece: Saving-Investment Balance
1992199319941995199619971998

Prel.
Gross domestic investment3,923.44,191.64,479.15,023.35,748.26,579.17,773.3
Gross fixed capital formation3,983.84,267.14,453.34,981.15,728.76,563.77,674.2
Change in stocks-60.4-75.525.842.219.515.499.1
Total saving3,923.44,191.64,479.35,023.35,748.26,579.17,773.4
Gross private saving3,236.43,504.73,968.53,882.83,700.13,160.93,632.3
Net government saving 1/-1,329.7-1,701.0-1,720.9-1,925.6-1,498.7-594.6-234.0
Depreciation1,640.01,847.72,117.22,409.12,770.73,174.53,425.0
Foreign saving 2/376.7540.2114.5657.0776.1838.3950.1
Gross domestic investment20.919.818.718.719.420.121.8
Gross fixed capital formation21.220.218.618.519.320.021.5
Change in stocks-0.3-0.40.10.20.10.00.3
Total saving20.919.818.718.719.420.121.8
Gross private saving17.216.616.514.412.59.710.2
Net government saving-7.1-8.0-7.2-7.2-5.0-1.8-0.7
Depreciation8.78.78.89.09.39.79.6
Foreign saving2.02.60.52.42.62.62.7
Memorandum items:
Government current revenue 1/6,327.37,396.48,769.410,133.811,275.812,707.414,023.7
(in percent of GDP)33.735.036.637.738.038.839.3
Government current expenditure 1/7,657.09,097.410,490.312,059.412,774.513,302.014,257.7
(in percent of GDP)40.843.043.744.943.040.640.0
Gross national saving3,796.53,789.24,576.94,608.75,169.85,930.36,953.3
(in percent of GDP)20.217.919.117.117.418.119.5
Sources: Ministry of National Economy; and Fund staff calculations.

On a national accounts basis; government statistics refer to the general government.

Current account deficit.

Sources: Ministry of National Economy; and Fund staff calculations.

On a national accounts basis; government statistics refer to the general government.

Current account deficit.

Table 5.Greece: Agricultural Production(In thousands of tons)
1992199319941995199619971998

Prov.
Soft wheat879.0819.0838.0758.0630.0654.0612.0
Hard wheat1,423.01,192.01,581.01,384.01,132.01,407.01,300.0
Maize1,976.01,936.01,814.01,520.01,800.02,000.02,000.0
Alfalfa1,479.01,489.01,428.01,396.01,266.01,237.01,232.0
Leaf tobacco 1/187.0136.0129.0120.0126.0121.0126.0
Cotton (industrial)818.0986.01,180.01,250.0962.01,100.01,170.0
Tomatoes for processing966.0950.01,100.01,130.01,162.01,167.01,226.0
Sugar beet3,059.02,718.02,420.02,600.02,352.03,095.01,970.0
Olive oil303.0268.0330.0330.0337.0400.0386.0
Lemons176.0137.0141.0140.0161.0153.0152.0
Oranges987.0897.0875.0820.0979.0965.0769.0
Apples385.0331.0321.0323.0335.0292.0332.0
Peaches1,122.01,083.01,173.0745.0897.0246.0483.0
Meat, total545.0528.0522.0510.0525.0522.0493.0
Milk, total1,803.01,828.01,853.01,834.01,786.01,768.01,848.0
Sources: Ministry of National Economy; and National Statistical Service of Greece.

Oriental, burley, and Virginia varieties.

Sources: Ministry of National Economy; and National Statistical Service of Greece.

Oriental, burley, and Virginia varieties.

Table 6.Greece: Manufacturing Production(Percentage changes)
Weight in

Index (1980)
1992199319941995199619971998
Total100.0-1.3-3.21.12.10.61.03.4
Consumer goods60.5-2.1-1.62.50.50.7-0.62.8
Consumer durable goods5.50.68.5-0.2-1.52.46.724.2
Capital goods34.0-0.1-8.2-1.56.50.14.32.0
Foodstuffs11.97.8-1.1-1.12.0-0.1-3.33.9
Beverages3.74.23.07.83.9-6.0-2.14.9
Tobacco2.3-4.9-1.115.710.9-1.2-0.8-5.1
Textiles16.1-8.5-6.5-0.5-5.4-4.61.4-0.8
Clothing and footwear6.1-4.33.2-11.8-9.8-12.0-3.1-13.1
Wood and cork2.2-3.1-8.2-9.017.0-1.9-11.6-8.3
Furniture1.2-2.9-0.92.4-4.7-0.2-0.1-3.4
Paper1.92.1-7.06.93.7-5.0-4.8-3.3
Printing and publishing2.6-2.9-5.6-2.4-0.78.4-7.5-4.4
Leather products0.82.7-5.6-4.3-8.3-7.1-11.8-14.9
Rubber and plastics3.9-10.33.79.4-12.61.1-0.49.7
Chemicals7.8-3.74.02.010.87.92.010.3
Petroleum and coal production2.814.3-9.412.34.37.0-0.62.0
Nonmetallic minerals8.6-4.20.33.01.87.12.22.5
Basic metallurgy6.52.0-5.04.94.8-3.710.22.4
Manufactured metal goods6.41.3-8.2-2.14.6-1.58.2-1.9
Nonelectrical machinery and appliances1.9-0.6-10.81.120.52.911.12.2
Electrical machinery and appliances4.71.79.1-1.53.06.712.722.9
Transport equipment8.0-0.3-20.4-8.74.6-1.1-3.05.1
Other0.6-53.5-36.5-11.114.279.8-2.4-44.2
Memorandum item:
Capacity utilization in manufacturing 1/n.a.77.974.974.976.675.674.4
Sources: National Statistical Service of Greece, Monthly Statistical Bulletin; Ministry of National Economy; and IOBE.

Estimate by IOBE.

Sources: National Statistical Service of Greece, Monthly Statistical Bulletin; Ministry of National Economy; and IOBE.

Estimate by IOBE.

Table 7.Greece: Price Developments(Average percentage changes over preceding period, except as indicated)
Weights 1/1992199319941995199619971998
Wholesale prices100n.a.11.311.98.77.86.13.33.9
Final products for home consumption82n.a.12.212.08.77.46.23.53.5
Domestic industrial products54n.a.14.713.57.48.17.14.02.8
Domestic primary products12n.a.1.75.413.65.18.94.27.5
Imported final products15n.a.12.612.29.27.01.62.15.4
Exported products18n.a.6.411.38.710.25.62.93.0
Consumer prices10010015.914.410.98.98.25.54.8
Food and nonalcoholic beverages332111.810.513.78.47.04.14.4
Housing111417.315.810.59.69.22.83.2
Clothing and footwear141114.011.010.19.59.36.95.7
Durable goods and household supplies8812.38.88.98.96.66.25.6
Transport and communication141520.318.85.65.36.15.22.7
Other goods and services 2/203118.117.412.510.59.57.16.0
Consumer prices (EU harmonized HICP)n.a.n.a.7.95.44.5
GDP deflator, at market pricesn.a.n.a.14.814.511.39.87.96.95.0
Import prices 3/n.a.n.a.12.17.75.76.83.62.15.8
Private consumption deflatorn.a.n.a.15.614.211.08.68.35.54.7
Memorandum items:
End-year increase
Wholesale pricesn.a.n.a.12.89.110.26.73.93.53.0
Consumer pricesn.a.n.a.14.412.110.87.97.34.73.9
Consumer prices (HICP)n.a.n.a.6.94.53.7
Source: Bank of Greece, Annual Report (various issues), Monthly Statistical Bulletin, and Bulletin of Conjunctural Indicators.

Weights are based on 1980 for the wholesale price index and 1988 for the consumer price index prior to 1995, and based on 1994 for data for 1995-98.

This category includes alcoholic beverages, tobacco, health and personal care, and education and recreation, along with other goods and services.

Implicit import deflator for goods and services.

Source: Bank of Greece, Annual Report (various issues), Monthly Statistical Bulletin, and Bulletin of Conjunctural Indicators.

Weights are based on 1980 for the wholesale price index and 1988 for the consumer price index prior to 1995, and based on 1994 for data for 1995-98.

This category includes alcoholic beverages, tobacco, health and personal care, and education and recreation, along with other goods and services.

Implicit import deflator for goods and services.

Table 8.Greece: Implicit Price Deflators(Percentage changes)
1992199319941995199619971998

Prel.
Gross domestic product (at market prices)14.814.511.39.87.96.95.0
Consumption15.614.210.89.87.36.86.8
Private15.614.211.08.88.35.54.7
Government15.314.210.118.22.712.17.4
Gross fixed capital formation12.711.07.47.35.74.66.5
Private12.810.57.17.25.54.36.5
Public12.412.48.17.66.35.26.5
Exports of goods and nonfactor services9.79.39.28.57.14.04.1
Imports of goods and nonfactor services12.17.75.86.83.62.15.8
Terms of trade-2.11.53.21.63.41.9-1.6
Source: Ministry of National Economy.
Source: Ministry of National Economy.
Table 9.Greece: Cost-Push Indicators of Inflation(Percentage changes)
1992199319941995199619971998

Prel.
Unit labor costs12.912.712.111.610.06.52.8
Gross operating surplus 1/15.816.611.37.97.15.56.1
Net indirect taxes 1/22.15.39.311.75.211.74.6
Import prices12.17.75.66.73.92.75.8
Deflator of total expenditure14.812.910.39.07.15.85.0
Contributions to changes in the deflator of total expenditure
Unit labor costs3.33.23.13.12.71.80.7
Gross operating surplus 1/7.27.65.33.63.22.52.7
Net indirect taxes 1/1.80.40.71.00.41.00.4
Import prices2.51.61.11.30.70.51.1
Deflator of total expenditure14.812.910.39.07.15.85.0
Memorandum items:
Implicit GDP deflator14.614.511.39.88.16.95.0
Implicit demand deflator14.213.610.39.47.46.25.4
Source: Ministry of National Economy.

Per unit of output.

Source: Ministry of National Economy.

Per unit of output.

Table 10.Greece: Labor Force, Employment, and Unemployment(In thousands, unless otherwise noted)
1992199319941995199619971998
Labor force4,0344,1184,1934,2484,3184,2944,316
In urban and semi-urban areas2,9783,0733,1513,2183,2773,277
In rural areas1,0571,0451,0431,0311,0411,018
Employment3,6843,7203,7903,8243,8723,8543,862
By region:
In urban and semi- urban areas2,6742,7282,7912,8442,8852,950
In rural areas1,011992998980987967
By gender:
Female1,2811,3011,3371,3721,4021,415
Male2,4032,4192,4522,4522,4702,439
Unemployment350398404425446440433
Female212234233249279367
Male138165170176167173
Youth (under 25 years)146162155157168162
Long-term172199210223260251
Unemployment rates 1/
(In percent)
Total 2/8.79.79.610.010.310.310.1
Youth unemployment 2/26.928.929.129.832.232.3
Registered unemployment 3/7.67.17.27.17.57.9
Memorandum items:
Labor force participation rate 4/48.348.548.748.949.248.5
Male63.563.663.763.663.362.1
Female34.234.734.935.636.536.2
Source: National Statistical Service of Greece.

Period average.

Based on the annual labor force survey by the National Statistical Service of Greece.

By the Labor Force Employment Organization (OAED).

14+age group.

Source: National Statistical Service of Greece.

Period average.

Based on the annual labor force survey by the National Statistical Service of Greece.

By the Labor Force Employment Organization (OAED).

14+age group.

Table 11.Greece: Employment in Selected Sectors(In thousands)
199319941995199619971998
Manufacturing578.9 1/577.2577.4575.3558.6577.9
Construction261.2260.7251.9251.6249.0282.3
Public sector enterprises and organizations154.2160.3161.7161.0158.5156.5
Banks53.055.958.159.860.561.7
Government 3/312.8306.4313.1320.2323.4326.4
Sources: Ministry of National Economy; National Statistical Service of Greece; and Union of Banks.

Seventy thousand persons employed in the repair of vehicles and home appliances have been reclassified into the service sector.

Permanent and temporary employees of the central administration, and other budgetary organizations.

Sources: Ministry of National Economy; National Statistical Service of Greece; and Union of Banks.

Seventy thousand persons employed in the repair of vehicles and home appliances have been reclassified into the service sector.

Permanent and temporary employees of the central administration, and other budgetary organizations.

Table 12.Greece: Wages and Salaries in the Nonagricultural Sector(Percentage changes over previous period)
199319941995199619971998

Est.
Nominal wages and salaries:
All sectors
Wage bill 1/12.312.915.314.011.57.3
Average earnings 2/12.513.011.911.510.56.8
Manufacturing 3/
Wages (per hour)10.513.113.28.68.94.9 4/
Salaries (per month)13.113.013.29.49.86.1 4/
Retail trade salaries (per month)12.013.312.89.712.09.3 4/
Civil service average earnings13.29.412.314.913.59.3 4/
Business sector average earnings 5/12.112.911.28.88.85.9 4/
Minimum wages and salaries
Wages (per day)12.012.69.47.88.05.4
Salaries (per month)12.012.69.37.88.05.3
Memorandum items:
Consumer prices (average)14.410.98.98.25.54.8
Real wages and salaries
All sectors
Wage bill 1/-1.81.85.95.45.72.4
Average earnings-1.71.92.83.04.71.9
Sources: Bank of Greece; and National Statistical Service of Greece.

National accounts basis (ESA).

Bank of Greece estimates; differences in rates of change between wage bill and average earnings are due not only to changes in employment, but also to statistical discrepancies.

Gross remuneration (including overtime) in establishments with ten or more employees.

Preliminary estimates (Bank of Greece).

All sectors excluding the civil service, public enterprises, and banking.

Sources: Bank of Greece; and National Statistical Service of Greece.

National accounts basis (ESA).

Bank of Greece estimates; differences in rates of change between wage bill and average earnings are due not only to changes in employment, but also to statistical discrepancies.

Gross remuneration (including overtime) in establishments with ten or more employees.

Preliminary estimates (Bank of Greece).

All sectors excluding the civil service, public enterprises, and banking.

Table 13.Greece: Employment, Productivity, and Unit Labor Costs in Manufacturing(Annual percentage changes)
199319941995199619971998
Production-3.21.12.10.61.03.4
Employment-5.9-3.00.1-0.6-3.2-0.9 2/
Hours worked per employee 1/0.00.10.10.2-0.10.1 2/
Productivity 3/2.93.92.01.14.65.3 2/
Hourly wages10.513.113.28.69.44.8 2/
Unit labor costs7.48.711.07.54.4-0.5 2/
Including impact of social security contributions 4/10.18.711.37.74.4-0.5 2/
Sources: Bank of Greece; and National Statistical Service of Greece.

For wage earners.

January-September.

Production per man-hour.

Estimate (Bank of Greece).

Sources: Bank of Greece; and National Statistical Service of Greece.

For wage earners.

January-September.

Production per man-hour.

Estimate (Bank of Greece).

Table 14.Greece: Collective Labor Agreements, Compulsory Arbitration and Impact of Labor Disputes
Number of

collective

agreements
Number of

arbitration

decisions
Number of man-hours lost to

labor disputes

(In millions)
TotalPrivate

sector
Public

enterprises

and banks
198022029920.5
19812333305.3
19822842327.9
198357803.0
19842522642.7
19851751677.75.52.2
198644828.85.63.2
1987768416.410.85.5
1988210835.63.42.2
19892761118.95.53.4
199019510620.410.410.1
1991287875.83.82.1
199217132 1/7.12.74.3
1993280303.52.31.2
1994287371.91.00.8
1995239330.70.60.1
1996385431.61.30.3
1997286521.51.10.4
1998292581.50.80.7
Sources: Bank of Greece; and Ministry of Labor.

Starting in 1992, arbitration decisions are not issued by courts, but by the newly established (under Law 1876/90) Organization for Medication and Arbitration.

Sources: Bank of Greece; and Ministry of Labor.

Starting in 1992, arbitration decisions are not issued by courts, but by the newly established (under Law 1876/90) Organization for Medication and Arbitration.

Table 15.Greece: Summary of Central Government Finances 1/
1993199419951996199719981999
BudgetProv.Budget
(In billions of drachmas)
Central government revenue5,9706,9407,7868,81110,00511,16611,25112,063
Tax revenue4,5455,2355,9686,6167,6018,5088,8299,089
Direct1,3551,7732,1332,3162,7673,1113,5873,474
Indirect3,1893,4623,8354,3004,8345,3975,2425,615
Nontax revenue1,4251,7051,8182,1952,4042,6582,4222,974
Investment budget2903103455687198909131,060
Of which: EU2722883225526988408901,030
SAGAP 2/709768730859819900810973
Other426627760768866868699941
Central government expenditure8,2959,82710,57111,70112,50913,32913,35814,218
Ordinary budget6,8578,2518,8809,74710,06410,42410,66711,050
Of which: Interest paid2,3343,3403,3563,5013,2163,2203,2333,350
Investment budget7288079621,0951,6262,0051,8812,195
SAGAP 2/709768730859819900810973
Central government primary expenditure5,9616,4877,2158,2009,29310,10910,12510,868
Of which: Current primary expenditure5,2335,6806,2537,1057,6678,1048,2448,673
Central government balance (budget presentation)-2,325-2,887-2,785-2,890-2,504-2,163-2,107-2,155
Of which: Central government primary balance94535716117121,0571,1261,195
Capitalized interest353250841793327270
Central government balance (Fund presentation)-2,678-3,137-2,869-3,069-2,537-2,190-2,134-2,155
Of which: Central government primary balance-3442034874326791,0301,0991,195
Memorandum item:
GDP21,13623,93426,59029,59532,75235,46135,67737,961
(In percent of GDP)
Central government revenue28.229.029.329.830.531.531.531.8
Tax revenue21.521.922.422.423.224.024.723.9
Direct6.47.48.07.88.48.810.19.2
Indirect15.114.514.414.514.815.214.714.8
Nontax revenue6.77.16.87.47.37.56.87.8
Investment budget1.41.31.31.92.22.52.62.8
Of which: EU1.31.21.21.92.12.42.52.7
SAGAP 2/3.43.22.72.92.52.52.32.6
Other2.02.62.92.62.62.42.02.5
Central government expenditure39.241.139.739.538.237.637.437.5
Ordinary budget32.434.533.432.930.729.429.929.1
Of which: Interest paid11.014.012.611.89.89.19.18.8
Investment budget3.43.43.63.75.05.75.35.8
SAGAP 2/3.43.22.72.92.52.52.32.6
Central government primary expenditure28.227.127.127.728.428.528.428.6
Of which: Current primary expenditure24.823.723.524.023.422.923.122.8
Central government balance (budget presentation)-11.0-12.1-10.4-9.8-7.6-6.1-5.9-5.7
Of which: Central government primary balance0.01.92.22.12.23.03.23.1
Capitalized interest1.71.00.30.60.10.10.10.0
Central government balance 2/ (Fund presentation)-12.7-13.1-10.8-10.4-7.7-6.2-6.0-5.7
Of which: Central government primary balance-1.60.81.81.52.12.93.13.1
Sources: Ministry of Finance; and Bank of Greece.

Data not directly comparable to those on a national accounts basis in Tables 22 and 23.

Special Account for Guarantees of Agricultural Products.

Sources: Ministry of Finance; and Bank of Greece.

Data not directly comparable to those on a national accounts basis in Tables 22 and 23.

Special Account for Guarantees of Agricultural Products.

Table 16.Greece: Ordinary Budget Revenue(In billions of drachmas)
1993199419951996199719981999
BudgetProv.Budget
Total ordinary budget revenue4,971.05,861.86,727.87,384.08,467.39,376.09,528.010,030.0
Tax revenue4,544.75,234.95,967.66,615.97,600.98,508.08,829.29,088.5
Direct taxes1,355.41,773.42,132.72,316.02,767.03,111.03,587.33,474.0
Personal income tax528.5671.8861.01,018.91,297.51,377.01,585.41,441.0
Corporate income tax287.4365.5459.7522.1641.7801.01,017.5968.3
Property tax70.276.580.078.9123.8139.5132.6130.5
Interest tax and other special income taxes257.2333.6335.1345.4361.0423.5449.5486.5
In favor of third parties5.93.42.12.11.41.41.81.6
Other206.2322.7394.7348.6341.6368.6400.5446.1
Direct tax arrears107.4178.2224.2151.4120.0110.0148.7185.0
Extraordinary direct taxes (incl. on property)0.00.00.00.00.00.00.00.0
Other98.8144.5170.5197.2221.6258.6251.8261.1
Indirect taxes3,189.33,461.53,834.94,299.94,833.95,397.05,241.95,614.5
Consumption taxes1,213.11,310.91,460.01,637.01,767.01,932.61,854.11,894.0
On imports (non-EU after 1993)82.172.843.544.868.675.664.846.5
Cars35.728.118.625.335.742.739.221.4
Other imports46.444.724.919.532.932.925.625.1
On domestic goods1,131.01,238.01,416.51,592.21,698.41,857.11,789.31,847.5
Hydrocarbon fuels674.0688.0739.4820.8822.7865.2823.0863.0
Tobacco239.8333.6371.8405.4458.0512.0512.8525.0
Alcohol, etc.35.239.743.359.075.183.073.685.0
Road duties51.039.376.080.497.8107.590.8110.0
Other131.0137.3186.0226.6244.8289.4289.1264.5
Turnover tax (FKE)23.927.331.639.339.950.045.050.0
Other107.1110.1154.4187.3204.9239.4244.1214.5
Transaction taxes1,866.42,034.42,262.22,545.02,923.63,307.03,246.93,550.5
VAT1,543.71,717.71,933.02,154.02,448.62,770.02,720.73,000.0
On imports (non-EU after 1993)289.9236.4222.1239.4302.6335.5326.3360.0
On domestic goods1,253.81,481.31,710.91,914.62,146.02,434.52,394.42,640.0
Other322.7316.7329.2391.0475.0537.0526.2550.5
Capital transfers82.693.793.7107.2163.0156.0171.9174.5
Special banking transactions tax80.047.541.249.247.749.046.550.0
Stamp duty160.0175.3193.7217.5257.5300.0292.0300.0
Other0.10.20.617.16.832.015.826.0
Other indirect taxes109.8116.2112.7117.9143.3157.4140.9170.0
Indirect tax arrears28.739.030.028.143.246.028.060.0
For EU51.547.650.850.457.565.064.255.0
Other29.629.631.939.442.646.448.755.0
Nontax revenue426.3626.9760.2768.1866.4868.0698.8941.5
Capital receipts152.7243.9422.9366.0474.7508.7408.2537.5
Receipts from EU104.8141.786.088.144.565.033.959.5
Other168.8241.2251.3314.0417.2294.3256.7344.5
Source: Ministry of Finance.
Source: Ministry of Finance.
Table 17.Greece: Ordinary Budget Revenue(In percent of GDP)
1993199419951996199719981999
BudgetProv.Budget
Total ordinary budget revenue23.524.425.024.925.926.426.726.4
Tax revenue21.521.822.222.323.224.024.723.9
Direct taxes6.47.47.97.88.48.810.19.2
Personal income tax2.52.83.23.44.03.94.43.8
Corporate income tax1.41.51.71.82.02.32.92.6
Property tax0.30.30.30.30.40.40.40.3
Interest tax and other special income taxes1.21.41.21.21.11.21.31.3
In favor of third parties0.00.00.00.00.00.00.00.0
Other1.01.31.51.21.01.01.11.2
Direct tax arrears0.50.70.80.50.40.30.40.5
Extraordinary direct taxes (incl. on property)0.00.00.00.00.00.00.00.0
Other0.50.60.60.70.70.70.70.7
Indirect taxes15.114.414.314.514.815.214.714.8
Consumption taxes5.75.55.45.55.45.45.25.0
On imports (non-EU after 1993)0.40.30.20.20.20.20.20.1
Cars0.40.30.10.10.10.10.10.1
Other imports0.20.20.10.10.10.10.10.1
On domestic goods5.45.25.35.45.25.25.04.9
Hydrocarbon fuels3.22.92.82.82.52.42.32.3
Tobacco1.11.41.41.41.41.41.41.4
Alcohol, etc.0.20.20.20.20.20.20.20.2
Road duties0.20.20.30.30.30.30.30.3
Other0.60.60.70.80.70.80.80.7
Turnover tax (FKE)0.10.10.10.10.10.10.10.1
Other0.50.50.60.60.60.70.70.6
Transaction taxes8.88.58.48.68.99.39.19.4
VAT7.37.27.27.37.57.87.67.9
On imports (non-EU after 1993)1.41.00.80.80.90.90.90.9
On domestic goods5.96.26.46.46.66.96.77.0
Other1.51.31.21.31.51.51.51.5
Capital transfers0.40.40.30.40.50.40.50.5
Special banking transactions tax0.40.20.20.20.10.10.10.1
Stamp duty0.80.70.70.70.80.80.80.8
Other0.00.00.00.10.00.10.00.1
Other indirect taxes0.50.50.40.40.40.40.40.4
Indirect tax arrears0.10.20.10.10.10.10.10.2
For EU0.20.20.20.20.20.20.20.1
Other0.10.10.10.10.10.10.10.1
Nontax revenue2.02.62.82.62.62.42.02.5
Source: Ministry of Finance.
Source: Ministry of Finance.
Table 18.Greece: Ordinary Budget Expenditures
1993199419951996199719981999
BudgetProv.Budget
(In billions of drachmas)
Total ordinary budget expenditure6,8578,2518,8809,74710,06410,42410,66711,050
(budget presentation)
Personnel outlays2,0392,2692,6233,0553,5133,6523,8593,914
Wages, salaries and allowances1,4341,6001,8792,2182,6012,7242,8322,905
Of which: allowances paid from off-budget account6081
Pensions498546604676740770861865
Medical care107123141161172158167144
Interest payments (budget presentation) 1/2,3343,3403,3563,5013,2163,2203,2333,350
Central government (incl. charges)2,1683,1623,2053,4003,1063,1203,1313,243
On military debt166177151101110100102107
Restitution of revenue to third parties295345456470585665736751
Payments to EU273309312355377438452435
Tax refunds279213236306291283272310
Rebates on export financing and interest subsidies16192021535
Agricultural subsidies143287393126101101105
Grants9751,1151,2211,3791,3691,4021,4101,474
Social security funds565694747805883913891926
Transport9154616053515166
Other319367413514433437468482
Other518484486469567563602615
Guarantees115763922111
Other consumer expenditures403408447467565562600614
Reserve0000095092
Investment expenditures01441581790000
(In percent of GDP)
Total ordinary budget expenditure32.434.433.032.830.729.429.929.1
(budget presentation)
Personnel outlays9.69.59.810.310.710.310.810.3
Wages, salaries, and allowances6.86.77.07.57.97.77.97.7
Pensions2.42.32.22.32.32.22.42.3
Medical care0.50.50.50.50.50.40.50.4
Interest payments (budget presentation) 1/11.013.912.511.89.89.19.18.8
Central government (incl. charges)10.313.211.911.49.58.88.88.5
On military debt0.80.70.60.30.30.30.30.3
Restitution of revenue to third parties1.41.41.71.61.81.92.12.0
Payments to EU1.31.31.21.21.21.21.31.1
Tax refunds1.30.90.91.00.90.80.80.8
Rebates on export financing and interest subsidies0.00.00.10.10.10.00.00.0
Agricultural subsidies0.70.10.30.30.40.30.30.3
Grants4.64.64.54.64.24.04.03.9
Social security funds2.72.92.82.72.72.62.52.4
Transport0.40.20.20.20.20.10.10.2
Other1.51.51.51.71.31.21.31.3
Other2.52.01.81.61.71.61.71.6
Guarantees0.50.30.10.00.00.00.00.0
Other consumer expenditures1.91.71.71.61.71.61.71.6
Reserve0.00.00.00.00.00.30.00.2
Investment expenditures0.00.60.60.60.00.00.00.0
Memorandum items:
Capitalized and accrued interest (in billions of drachma) 2/360.0120.021117933272727
Capitalized and accrued interest (in percent of GDP) 2/1.70.50.80.60.10.10.10.1
Source: Ministry of Finance.

Does not include capitalized and accrued interest.

Bank of Greece data.

Source: Ministry of Finance.

Does not include capitalized and accrued interest.

Bank of Greece data.

Table 19.Greece: Investment Budget Expenditure by Sector(In billions of drachmas)
1993199419951996199719981999
BudgetProv.Budget
Public investment program Communications001009921
Agriculture1197128982121138
Forestry, fishing2520161620292333
Land reclamation5847322729504857
Industry, energy, handicrafts607678132273285293277
Transportation (excluding railways)146142176209312374318348
Railways10242332113174174226
Tourism, museums, monuments1419312456575838
Education7310110692120196155194
Housing482718491086969
Health, welfare19272026407268100
Water supply, sewerage6158453641585166
Public administration1511151715453852
Research, technology, technical cooperation66231124333336
Prefectural and border-aid projects186205271275267276284369
Special projects in Athens and Thessaloniki13236512810410310055
Miscellaneous (including amortization and interest payments)27342640754142106
Reserve0000015011
Total 1/7288079621,0951,6262,0051,8812,195
(In percent of GDP)(3.4)(3.4)(3.6)(3.8)(5.0)(5.7)(5.3)(5.8)
Source: Ministry of Finance.

Does not include Dr 48.5 billion paid to the Greek Telecommunication Organization against loan from the European Investment Bank, and Dr 19 billion for increase of Olympic Airways share capital in 1995.

Source: Ministry of Finance.

Does not include Dr 48.5 billion paid to the Greek Telecommunication Organization against loan from the European Investment Bank, and Dr 19 billion for increase of Olympic Airways share capital in 1995.

Table 20.Greece: Budget Transfers from and to the European Union(In billions of drachmas)
1993199419951996199719981999
BudgetProv.Budget
Receipts1,3271,4191,4041,7631,6722,0281,9061,304
Ordinary budget104141868848653559
Investment budget2722883225526988408901,030
Special account for Agricultural Guarantees709768730859819900810973
Budget of other tiers of Government241222267265107223171242
Payments273309312355377438452435
Custom duties, etc.4438444550455346
GDP or VAT-based contributions172221234271301356360352
Other5750343926363837
Net receipts1,0541,1111,0931,4081,2951,5901,4541,869
(as percent of GDP)5.04.64.14.74.04.54.14.9
Source: Ministry of Finance.
Source: Ministry of Finance.
Table 21.Greece: Central Government Expenditure, Functional Classification(Accrual basis)
19931994199519961997199819991993199419951996199719981999
BudgetProv.BudgetBudgetProv.Budget
(In billions of drachmas)(In percent of total)
Defense5996947818039419781,0181,0465.85.65.85.25.86.06.05.8
Of which: External debt servicing 1/1662212301801881791831901.61.81.71.21.21.11.11.1
Education6547488629631,1281,2471,2171,3046.36.06.46.27.07.67.27.3
Health, social welfare and insurance1,1721,4201,5581,7142,0512,0912,2292,22511.311.411.511.012.712.813.212.4
Agriculture1,0291,0301,0111,1901,1661,2791,2421,4569.98.37.57.77.27.87.38.1
Debt service4,2365,7666,1107,1396,6506,0406,6196,89140.946.245.146.041.237.039.138.4
Interest payments 1/2/2,5283,2393,3373,5013,0603,0683,0783,16024.426.024.622.619.018.818.217.6
Domestic 1/2/2,2832,9532,9743,1172,6562,6562,5802,69522.023.721.920.116.516.315.215.0
External2452863633844044124984652.42.32.72.52.52.52.92.6
Amortization1,7082,5272,7733,6393,5892,9723,5423,73116.520.320.523.422.318.220.920.8
Domestic1,1271,8972,0392,8642,4151,5912,0872,60310.915.215.018.515.09.712.314.5
External4775175855169039911,0557264.64.14.33.35.66.16.24.0
Military Dept.1041131492592723904004021.00.91.11.71.72.42.42.2
Other expenditures2,6732,8173,2333,7114,1954,6924,6025,02825.822.623.823.926.028.727.228.0
Total expenditures10,36312,47413,55615,51916,13116,32816,92617,949100.0100.0100.0100.0100.0100.0100.0100.0
Memorandum item:
Total, excluding amortization8,6559,94710,78311,88012,54213,35613,38514,21883.579.779.576.677.781.879.179.2
Source: Ministry of Finance.

Including military debt service.

Including capitalized interest.

Source: Ministry of Finance.

Including military debt service.

Including capitalized interest.

Table 22.Greece: Summary of General Government Finances 1/(In billions of drachmas)
199319941995199619971998

Prel.
Central government
Current revenue4,819.75,805.06,760.77,475.58,649.59,508.9
Of which: Tax revenue4,050.34,766.65,449.76,007.16,936.97,782.4
Current expenditure6,977.48,239.79,405.79,866.110,191.010,793.7
Public consumption2,096.42,324.72,940.12,937.03,409.13,656.6
Interest2,647.93,360.73,462.13,564.93,146.13,225.0
Net current transfers2,233.12,554.33,003.53,364.23,635.83,912.1
Net capital spending1,148.2720.0836.2656.6589.5459.5
Of which: Debt assumptions681.1311.037.4219.90.00.0
Overall balance-3,305.9-3,154.8-3,481.2-3,047.2-2,131.0-1,744.3
without debt assumptions-2,624.7-2,843.7-3,443.8-2,827.3-2,131.0-1,744.3
Primary balance-657.9205.9-19.0517.71,015.11,480.7
without debt assumptions23.2517.018.4737.61,015.11,480.7
Social security funds
Current revenue (including state transfers)3,065.63,608.44,112.24,591.44,939.45,397.2
Of which: Contributions1,990.72,320.12,681.12,983.53,264.53,591.1
Current expenditure2,769.93,103.53,569.63,924.84,317.64,713.5
Of which: Interest38.48.70.92.02.04.0
Net capital spending-45.4-158.3-7.9-53.7-34.4-39.0
Overall balance341.2663.3550.6720.3656.2722.7
Primary balance379.6672.0551.4722.3658.2726.7
Local authorities
Current revenue (including state transfers)240.0274.3346.6399.2421.2478.3
Current expenditure191.7223.2272.9300.8340.1384.6
Of which: Interest7.06.08.79.19.710.7
Net capital spending45.849.153.293.664.178.4
Overall balance2.42.020.54.817.115.3
Primary balance9.38.129.213.926.726.0
Hospitals
Current revenue (including state transfers)410.0460.5539.3586.8708.1760.6
Current expenditure405.1448.4591.7707.2660.5728.1
Of which: Interest0.80.10.00.20.20.2
Net capital spending8.43.5-49.2-107.610.15.5
Overall balance-3.48.5-3.2-12.737.527.0
Primary balance-2.78.6-3.1-12.637.727.2
Other public entities
Current revenue (including state transfers)294.2299.2331.6414.0434.8439.4
Current expenditure186.5154.8176.3166.7213.7198.5
Of which: Interest7.85.60.00.00.00.0
Net capital spending51.464.691.2148.2102.3164.6
Overall balance56.379.764.199.0118.8130.4
Primary balance64.185.364.199.0118.8130.4
Consolidated general government
Current revenue7,396.38,767.910,133.811,284.212,731.714,023.9
Current expenditure9,097.410,490.212,059.412,782.813,301.614,257.8
Primary6,395.57,105.28,587.79,206.710,143.711,017.9
Interest2,701.93,381.13,471.73,576.23,158.03,239.9
Net capital spending1,208.4679.0923.5737.1731.5614.9
General government saving-1,701.1-1,722.3-1,925.6-1,498.7-569.9-233.9
Overall balance-2,909.4-2,401.3-2,849.1-2,235.8-1,301.4-848.9
Primary balance-207.5979.8622.51,340.41,856.62,391.0
Without debt assumptions
Overall balance-2,228.3-2,090.2-2,811.7-2,015.9-1,301.4-848.9
Primary balance473.61,290.8659.91,560.21,856.62,391.0
Source: Ministry of National Economy.

Data on a national accounts basis; central government accounts not directly comparable to those compiled by the Ministry of Finance.

Source: Ministry of National Economy.

Data on a national accounts basis; central government accounts not directly comparable to those compiled by the Ministry of Finance.

Table 23.Greece: Summary of General Government Finances 1/(In percent of GDP)
199319941995199619971998

Prel.
Central government
Current revenue22.824.225.125.226.426.7
Of which: Tax revenue19.219.920.320.221.121.8
Current expenditure33.034.435.033.231.130.3
Public consumption9.99.710.99.910.410.2
Interest12.514.012.912.09.69.0
Net current transfers10.610.711.211.311.111.0
Net capital spending5.43.03.12.21.81.3
Of which: Debt assumptions3.21.30.10.70.00.0
Overall balance-15.6-13.2-12.9-10.3-6.5-4.9
without debt assumptions-12.4-11.9-12.8-9.5-6.5-4.9
Primary balance-3.10.9-0.11.73.14.2
without debt assumptions0.12.20.12.53.14.2
Social security funds
Current revenue (including state transfers)14.515.015.315.515.115.1
Of which: Contributions9.49.710.010.010.010.1
Current expenditure13.112.913.313.213.213.2
Of which: Interest0.20.00.00.00.00.0
Net capital spending-0.2-0.70.0-0.2-0.1-0.1
Overall balance1.62.82.02.42.02.0
Primary balance1.82.82.12.42.02.0
Local authorities
Current revenue (including state transfers)1.11.11.31.31.31.3
Current expenditure0.90.91.01.01.01.1
Of which: Interest0.00.00.00.00.00.0
Net capital spending0.20.20.20.30.20.2
Overall balance0.00.00.10.00.10.0
Primary balance0.00.00.10.00.10.1
Hospitals
Current revenue (including state transfers)1.91.92.02.02.12.1
Current expenditure1.91.92.22.42.02.0
Of which: Interest0.00.00.00.00.00.0
Net capital spending0.00.0-0.2-0.40.00.0
Overall balance0.00.00.00.00.10.1
Primary balance0.00.00.00.00.10.1
Other public entities
Current revenue (including state transfers)1.41.21.21.41.31.2
Current expenditure0.90.61.10.60.70.6
Of which: Interest0.00.00.00.00.00.0
Net capital spending0.20.30.30.50.30.3
Overall balance0.30.30.20.30.40.4
Primary balance0.30.40.20.30.40.4
Consolidated general government
Current revenue35.036.637.738.038.939.3
Current expenditure43.043.744.943.040.640.0
Primary30.329.631.931.031.030.9
Interest12.814.112.912.09.69.1
Net capital spending5.72.83.42.52.21.7
General government saving-8.0-7.2-7.2-5.0-1.7-0.7
Overall balance-13.8-10.0-10.6-7.5-4.0-2.4
Primary balance-1.04.12.34.55.76.7
Source: Ministry of National Economy.

Data on a national accounts basis; central government accounts not directly comparable to those compiled by the Ministry of Finance.

Source: Ministry of National Economy.

Data on a national accounts basis; central government accounts not directly comparable to those compiled by the Ministry of Finance.

Table 24.Greece: Public Entities Balance 1/(In billions of drachmas)
1993199419951996199719981999
BudgetProv.Budget
Operating income1,285.51,497.41,714.51,905.42,141.02,402.92,364.92,732.8
Operating expenses1,861.12,163.72,427.12,707.03,131.73,429.13,421.83,721.1
Operating deficit575.6666.3712.6801.6991.61,026.21,056.9988.2
(In percent of GDP)2.82.92.82.73.02.93.02.6
Workers’ Housing Organization (OEK)-38.8-51.1-64.0-67.7-73.1-98.3-95.9-106.9
Social Insurance Organization (IKA)251.4292.3332.0384.1490.2549.2548.4568.7
Workers’ Fund (EE)2.6-1.6-1.2-1.3-3.3-3.2-3.3-3.0
Labor Force Employment Organization (OAED)36.528.230.211.061.759.870.051.9
Farmers’ Social Insurance Organization (OGA)225.9303.0314.8360.9379.3380.0393.6321.9
National Welfare Organization (EOP)8.38.39.59.812.213.512.512.1
Seaman’s Insurance Fund (NAT-KAAN)89.787.291.4104.8118.0125.2131.4143.6
Investment expenditures 2/33.441.746.847.146.880.8100.698.6
Other expenditures51.039.044.00.00.058.60.00.0
Operating and investment deficit660.0747.0803.4897.7944.91.165.4956.3889.7
(In percent of GDP)3.23.23.13.02.93.32.72.3
Less:
State contributions
Ordinary budget523.9632.6641.6720.5753.4784.1772.7784.0
Investment budget48.292.089.080.2142.1136.0132.2214.7
Depreciation and special resources29.531.046.947.141.745.445.343.2
Net borrowing requirement58.4-8.525.949.8101.1200.1207.345.7
Workers’ Housing Organization (OEK)-2.5-22.1-38.8-41.2-46.3-48.7-31.1-54.9
Social Insurance Organization (IKA)48.730.878.2120.1188.0292.3300.1263.5
Workers’ Fund (EE)2.9-1.3-0.7-0.53.9-1.0-1.0-0.9
Labor Force Employment Organization (OAED)-45.4-47.3-41.9-64.7-42.7-56.6-42.5-82.2
Farmers’ Social Insurance Organization (OGA)-5.2-17.1-24.0-22.2-24.9-51.4-33.0-100.6
National Welfare Organization (EOP)-0.20.01.51.4-1.41.90.20.9
Seaman’s Insurance Fund (NAT-KAAN)60.248.451.656.924.563.714.619.8
Memorandum item:
Interest payments67.259.652.832.434.817.117.020.4
Of which: Social Insurance Organization (IKA)45.050.050.030.033.017.016.020.0
Source: Ministry of Finance.

Covers seven major public entities.

Excluding amortization payments.

Source: Ministry of Finance.

Covers seven major public entities.

Excluding amortization payments.

Table 25.Greece: Public Enterprise Balance 1/(In billions of drachmas)
1993199419951996199719981999
BudgetProv.Budget
Operating revenue2,416.42,728.32,971.03,368.63,568.23,980.13,948.34,285.0
Operating expenditures 2/2,291.52,630.92,757.63,098.93.391.53,563.33,715.83,938.9
Of which:
Wages and salaries606.3770.7839.2942.51,043.91,060.31,061.01,102.4
Fuel155.0160.9174.1213.0164.1242.2220.4217.5
Interest payments159.3186.5179.5179.9200.3182.1243.2224.5
Depreciation300.5322.7296.4318.7388.4368.4486.9510.0
Other1,070.41,190.11,268.41,444.71,594.91,710.31,704.31,884.6
Operating balance 3/124.997.4213.4269.7176.7416.9232.5346.1
(In percent of GDP)0.60.40.80.90.51.20.70.9
Investment expenditures 4/787.0720.1855.71,052.11,316.71,611.51,467.81,897.3
Other need of funds93.2308.7287.7166.9313.7267.1350.9317.3
Operating and investment
deficit755.3931.4930.0949.31,453.71,461.71,586.11,868.5
(In percent of GDP)3.63.93.53.24.44.14.54.9
Less:
State contributions:
Ordinary budget3.224.434.038.1-10.7-14.7-3.221.6
Investment budget, etc.288.3310.5360.2470.5383.4624.8401.7450.2
Depreciation and special resources392.3581.7432.7562.51,044.9884.31,237.81,062.4
Net borrowing requirement 3/4/71.514.7103.1-121.836.1-32.6-50.2334.4
Of which:
Public Power Corporation5.7-23.8-16.458.893.864.470.076.7
Hellenic Telecommunications Organization-16.437.536.9-264.6-205.8-174.8-85.5164.7
Greek Railways62.433.175.658.077.454.5-11.044.5
Olympic Airways19.7-14.6-34.9-25.813.9-48.9-1.4-17.5
Athens Urban Transport Organization14.233.620.744.854.458.573.462.8
Hellenic Aerospace Industry9.111.110.10.17.33.33.4-5.0
Greek Post Office4.816.541.953.837.350.636.117.3
Athens Water and Sewerage-11.7-10.0-10.5-10.3-11.82.6-22.0-3.5
Other-16.3-68.7-20.3-36,6-30.5-42.7-113.2-5.6
Source: Ministry of National Economy.

Covers 46 major public enterprises.

Breakdown into components are estimates.

Surplus (+) or deficit (-).

Excluding amortization payments.

Source: Ministry of National Economy.

Covers 46 major public enterprises.

Breakdown into components are estimates.

Surplus (+) or deficit (-).

Excluding amortization payments.

Table 26.Greece: Operating Balance of Selected Public Enterprises(In billions of drachmas)
1993199419951996199719981999
BudgetProv.Budget
Public Enterprises
Public Power Corporation-2.79.359.180.327.245.014.343.0
State Oil Refinery11.910.07.417.210.518.80.00.0
State Petroleum Industry8.219.26.712.05.414.10.00.0
Institute for Geological and Mining Research0.2-5.4-6.2-7.0-8.4-7.9-8.1-8.0
National Organization of Greek Handicrafts-7.5-2.80.4-3.0-3.6-3.6-3.6-4.0
Hellenic Telecommunications Organization140.6176.1203.7250.3300.1368.0304.1307.1
Greek State Railways-70.7-80.6-84.1-110.6-148.9-97.7-139.5-105.3
Olympic Airways-15.70.96.511.2-6.930.4-17.020.9
Greek Post Office-10.7-16.9-18.6-14.0-25.2-15.7-16.90.7
Athens Urban Transport Organization 1/-23.5-53.0-66.1-78.9-94.7-82.8-75.1-69.2
National Broadcasting Corporation-14.5-14.5-4.3-5.6-2.33.22.8-2.2
National Tourism Organization-3.5-4.7-5.4-4.2-4.1-5.0-3.1-2.5
Piraeus Port Authority2.33.26.23.92.6-0.39.41.5
Athens Water and Sewerage5.2-1.0-1.29.39.36.017.412.5
Hellenic Aerospace Industry2.61.00.5-3.6-2.50.70.14.6
Other public enterprises 2/102.756.6108.9112.3118.1143.5112.5109.9
Total public enterprises124.997.4213.4269.7176.7416.9232.5346.1
Sources: Ministry of Finance and Ministry of National Economy.

Including Thermic Buses Corporation (since June 1994), Athens Piraeus Trolley Buses, and Athens Piraeus Electric Railways.

Thirty-one additional public enterprises.

Sources: Ministry of Finance and Ministry of National Economy.

Including Thermic Buses Corporation (since June 1994), Athens Piraeus Trolley Buses, and Athens Piraeus Electric Railways.

Thirty-one additional public enterprises.

Table 27.Greece: Financing of the PSBR(In billions of drachmas)
199319941995199619971998

Prov.
Central government balance (cash basis)-2,941-2,976-2,994-3,856-2,595-2302
Petroleum and other account balance-128-45-55-14-25-80
Public entity balance295516546647345535
General government balance-2,774-2,505-2,503-3,223-2,275-1847
Public enterprise balance6-2051-83133-35
Public sector borrowing requirement-2,768-2,710-2,502-3,306-2,142-1882
Financing
Domestic2,0042,4202,0383,0131,002-16
Bank972798-50-100352-176
Bank of Greece 1/-2014-438-152227218
Treasury bills and bonds purchased by banks and specialized credit institutions395451327-16695-737
Loans and advances from banks and specialized credit institutions23874-2339-5318
Capitalized interest360259841793525
Nonbank1,0321,6222,0883,113650160
Foreign7652904642931,1401898
Net foreign borrowing by central government5541842981811,296174
Net foreign borrowing by public entities and enterprises-462-44-39-187-126
Net foreign borrowing for oil imports000000
Net investment in government paper by no25760-118-209311850
Net investment in government paper by domestic banks (in foreign exchange)04432836000
Memorandum items:
Percent of PSBR (cash basis) financed by Banking system3530-2-316-9
Of which: Bank of Greece-11-18-51111
Nonbank public37608494308
External financing281119954101
Source: Bank of Greece.

Including treasury bills and bonds held by the Bank of Greece, as well as changes in the balance of the petroleum account through 1992.

Source: Bank of Greece.

Including treasury bills and bonds held by the Bank of Greece, as well as changes in the balance of the petroleum account through 1992.

Table 28.Greece: Gross General Government Debt(In billions of drachmas; end of period)
199319941995199619971998

Prov.
Central administration23,43127,16830,97035,29138,05840,617
Drachma-denominated15,01717,64621,18927,31527,69029,413
Treasury bills5,7667,5338,42210,0126,8005,314
Bonds2,4523,3805,9399,77215,24218,753
Bonds for debt consolidation and restructuring, share capital increases, etc.5,3975,1795,2914,7364,1703,904
Bank of Greece1,4021,3671,3311,2951,2591,223
Short-term 1/977977977977977977
Long-term425390354318282246
Other188187206205219219
Of which: Participation in international institutions182182201201214214
Foreign currency-denominated8,2269,5229,7819,27110,36811,203
Foreign currency-linked bonds1,7021,8791,5742391513
External4,4825,3885,6726,3777,4538,319
Bank of Greece 2/2,0422,2552,5352,6552,7642,881
Armed forces8299241,012955982938
Drachma-denominated74829299105108
Foreign currency-denominated755842920856877830
Of which: External755842920856877830
Central government24,26028,09231,98236,24639,04041,555
In percent of GDP115117119122119117
Drachma-denominated15,27917,72821,28126,11927,79529,522
Foreign currency-denominated8,98110,36410,70110,12711,24512,033
Foreign currency-linked bonds1,7021,8791,5742391513
External5,2376,2306,5927,2338,3309,149
Bank of Greece 2/2,0422,2552,5352,6552,7642,881
Local authorities808793121124120
Drachma-denominated717983114124120
Foreign currency-denominated987700
Of which: External987700
Social security funds369221242191171180
Drachma-denominated369221242191171180
Foreign currency denominated000000
Other769693908782
Inter-governmental debt1,0312,0912,6083,1233,3663,863
8. General government (Maastricht definition)23,59226,22329,60333,32435,84237,860
In percent of GDP)111.6109.3110.1112.2109.4106.1
Drachma-denominated14,68815,93718,99823,19027,79525,827
Foreign currency-denominated8,99010,37210,70810,13411,24512,033
Foreign currency-linked bonds1,7021,8791,5742391513
External5,2466,2386,5997,2408,3309,149
Bank of Greece2,0422,2552,5352,6552,7642,881
Sources: Ministry of Finance; and Bank of Greece.

Replaced by long-term bonds at end-1993.

Bonds issued in 1993 to cover valuation differences.

Sources: Ministry of Finance; and Bank of Greece.

Replaced by long-term bonds at end-1993.

Bonds issued in 1993 to cover valuation differences.

Table 29.Greece: Monetary Program and Outturn 1/(End of period)
199419951996199719981999 2/
ProgramOutturnProgramOutturnProgramOutturnProgramOutturnProgramOutturnProgram
(Annual percentage changes)
Broad money (M3)8-118.87.910.36.99.36.99.66.98.9
Of which:
Currency in circulation11.610.44.212.42.1
Private sector deposits24.615.013.99.21.6
M413.911-138.2 2/9-1212.08-11-1.63.2
M4N 3/13.713.015.37.89.87.9
Domestic credit (net) 4/6.88.96.87.95.75.94.69.74.69.77.9
Private sector 5/11.013.822.017.015.315.2
Public sector 4/7.02.4 6/1.07.17.1
Drachma/ECU5.63.03.0broadly stable1.0stable1.7broadly stable5.4
Nominal GDP12.313.29.512.19.910.510.410.38.9
CPIless than 1010.67.07.95.07.34.54.7less than 2 percent by end-19993.9
(In billions of drachmas)
Broad money (M3) 4/1,200-1,6001,2811,200-1,4001,6251,040-1,5401,6251,150-1,7001,8211,863
Domestic credit (net)1,400-1,6001,9151,9171,6072,9693,412
Private sector7008271,5031,4141,4771,690
Public sector700-9001,0884141931,4921,722
Sales of government debt to the nonbank public1,300-1,5001,6222,0883,113650160
Source: Bank of Greece.

The definition of net domestic credit and credit to the public sector in the monetary program is different from that in the monetary survey; it includes borrowing by the public sector directly from abroad, as well as capitalized interest. Also, for all credit aggregates the data do not reflect the exchange of government-guaranteed credit for government bonds.

M4 was revised to include secondary market transactions from 1995 on.

Beginning in 1999, the Bank of Greece started to rely, inter alia, on a new liquidity indicator, M4N, to provide information on the determinants of inflation. M4N, which includes M4 (currency in circulation, residents’ drachma deposits, repos, bank certificates, and treasury bills), in addition to residents’ foreign exchange depostis and money market mutual fund shares, is regarded as a more appropriate gauge of the conditions and stance of monetary policy. The expected growth rates of M4N and domestic credit are not intermediate monetary policy targets, but rather indicative projections.

Percentage changes in credit to the public sector and net domestic credit are calculated as the flows during the year excluding valuation adjustments over the stock of debt outstanding at the end of the previous year.

Excluding Securities

NDC to the public sector in 1995 is affected by the inclusion of secondary-market sales of government paper from bank portfolios to the nonbank public.

Source: Bank of Greece.

The definition of net domestic credit and credit to the public sector in the monetary program is different from that in the monetary survey; it includes borrowing by the public sector directly from abroad, as well as capitalized interest. Also, for all credit aggregates the data do not reflect the exchange of government-guaranteed credit for government bonds.

M4 was revised to include secondary market transactions from 1995 on.

Beginning in 1999, the Bank of Greece started to rely, inter alia, on a new liquidity indicator, M4N, to provide information on the determinants of inflation. M4N, which includes M4 (currency in circulation, residents’ drachma deposits, repos, bank certificates, and treasury bills), in addition to residents’ foreign exchange depostis and money market mutual fund shares, is regarded as a more appropriate gauge of the conditions and stance of monetary policy. The expected growth rates of M4N and domestic credit are not intermediate monetary policy targets, but rather indicative projections.

Percentage changes in credit to the public sector and net domestic credit are calculated as the flows during the year excluding valuation adjustments over the stock of debt outstanding at the end of the previous year.

Excluding Securities

NDC to the public sector in 1995 is affected by the inclusion of secondary-market sales of government paper from bank portfolios to the nonbank public.

Table 30.Greece: Monetary Survey 1/(In billions of drachmas; end of period)
199319941995199619971998

Prov.
Net domestic credit18,386.420,121.722,414.024,140.626,445.128,276.6
Private sector 2/6,648.77,536.49,157.010,391.011,923.913,755.5
Net public sector 3/11,737.712,585.313,257.013,749.614,521.114,521.1
Central government 4/11,843.012,131.512,783.413,414.814,271.014,143.8
Public enterprises282.5405.6449.8498.0527.8688.8
Public entities-387.848.223.8-164.0-277.7-311.5
Net foreign assets (short-term)205.41,499.71,479.23,138.7293.4-1,088.8
Foreign deposits4,117.44,439.04,999.15,258.98,263.410,910.4
Foreign assets4,322.85,938.76,478.38,397.68,556.79,821.5
Other items (net assets)-4,117.0-5,866.0-6,512.8-8,274.0-5,912.1-4,498.5
Of which:
Long-term foreign currency liabilities5,058.16,211.07,272.67,931.46,170.44,911.6
Long-term foreign currency claims on government3,596.33,294.52,750.22,129.61,578.81,082.8
Broad money (M3) 5/14,474.815,755.517,380.419,005.220,826.322,689.3
Narrow money (M1) 5/2,223.72,793.53,149.03,548.04,003.04,538.5
Currency in circulation1,512.01,687.71,863.61,941.42,182.72,229.3
Private sight deposits711.71,105.81,285.41,606.61,820.32,309.2
Quasi money9,653.711,805.713,564.615,308.316,654.716,465.9
Private savings deposits7,709.78,811.510,445.412,201.713,335.313,751.4
Private time deposits1,943.92,994.23,119.23,106.63,319.32,714.4
Bank bonds703.5838.4570.859.8126.7163.6
Repos1,893.9317.896.089.241.91,521.4
Memorandum items: 5/
M1 plus public sector sight deposits2,687.63,299.43,718.14,295.84,817.45,538.7
M3 plus public sector deposits15,846.716,665.018,746.620,515.022,218.623,951.3
M3 plus foreign exchange deposits18,592.220,194.422,379.524,264.129,089.633,599.7
M4, drachma liquidity indicator18,566.921,149.422,889.625,636.425,233.326,023.3
M4N, broader liquidity indicator19,435.221,987.124,852.228,649.330,883.033,898.7
Source: Bank of Greece.

Revised data not comparable to previous years, due to a change in the reporting system. Data reflect the exchange of government-guaranteed credit for government bonds. Also, net credit to the central government in 1991–95 includes capitalized interest on government bonds held by commercial banks.

Includes securities and loans in foreign currency.

Excluding long-term loans in foreign currency by the Bank of Greece.

Net domestic credit to the central government now includes Bank of Greece foreign exchange differences.

The monetary aggregates are defined as follows: narrow money (M1) is currency plus private sight deposits (excluding blocked deposits); broad money (M3) is Ml plus time and savings deposits, bank bonds and repurchase agreements; total drachma financial assets (M4) is M3 plus private sector holdings of T-bills and government bonds of maturity up to one year. M4N is M4 plus foreign exchange deposits and holdings of money market mutual funds.

Source: Bank of Greece.

Revised data not comparable to previous years, due to a change in the reporting system. Data reflect the exchange of government-guaranteed credit for government bonds. Also, net credit to the central government in 1991–95 includes capitalized interest on government bonds held by commercial banks.

Includes securities and loans in foreign currency.

Excluding long-term loans in foreign currency by the Bank of Greece.

Net domestic credit to the central government now includes Bank of Greece foreign exchange differences.

The monetary aggregates are defined as follows: narrow money (M1) is currency plus private sight deposits (excluding blocked deposits); broad money (M3) is Ml plus time and savings deposits, bank bonds and repurchase agreements; total drachma financial assets (M4) is M3 plus private sector holdings of T-bills and government bonds of maturity up to one year. M4N is M4 plus foreign exchange deposits and holdings of money market mutual funds.

Table 31.Greece: Growth of Money and Credit Aggregates 1/(In percent per annum; end of period)
1992199319941995199619971998

Provis.
Money
Currency in circulation12.37.211.610.44.212.42.1
M1, narrow money12.913.025.612.712.712.813.4
M3, broad money14.415.08.810.39.39.68.9
M3 plus foreign exchange deposits17.016.08.610.88.419.815.5
Foreign currency deposits27.519.57.812.65.257.1132.0
M4, drachma liquidity indicator19.215.313.98.212.0-1.63.2
M4N, broader liquidity indicator16.713.713.015.37.89.8
Credit 2/
Net domestic credit17.113.58.79.68.311.4
Credit to private sector 3/14.212.313.822.017.015.315.2
Net credit to public sector19.614.16.74.84.59.7
Of which: Credit to central government25.622.62.45.40.54.3
Sources: Bank of Greece; and Fund staff calculations.

Figures include capitalized interest on government bonds held by commercial banks. Data also reflect the exchange of government-guaranteed credit for government bonds.

Excluding long-term loans to government in foreign currency by the Bank of Greece.

Including securities and loans in foreign currency.

Sources: Bank of Greece; and Fund staff calculations.

Figures include capitalized interest on government bonds held by commercial banks. Data also reflect the exchange of government-guaranteed credit for government bonds.

Excluding long-term loans to government in foreign currency by the Bank of Greece.

Including securities and loans in foreign currency.

Table 32.Greece: Distribution of Bank Credit to the Private Sector 1/(End of period)
1993199419951996199719981998
In billions

of Drachmas
In

percent
Total private sector11.513.822.017.015.315.212,836100.0
Agriculture6.17.014.65.52.82.31,1498.9
Manufacturing and mining4.711.714.410.95.47.13,41026.6
Of which:
Industry and mining5.312.213.811.74.15.72,60020.3
Short- and medium-term7.414.519.520.06.05.52,08316.2
Long-term0.57.20.4-11.6-3.06.45174.1
Small-scale industries2.69.816.57.910.111.68106.3
Trade26.318.128.719.322.620.22,78521.7
Housing11.911.519.427.523.820.62,32018.1
Other22.021.638.024.323.022.13,17724.7
Of which: Consumer credit32.065.283.435.827.338.11,0107.9
Source: Bank of Greece.

Without taking into account the reduction in outstanding bank credit caused by the conversion of loans guaranteed by the government into government bonds. These conversions were: 1991 Dr 54.3 billion; 1992 Dr 185.0 billion; 1993 Dr 492.1 billion; and 1994 Dr 31.9 billion.

Source: Bank of Greece.

Without taking into account the reduction in outstanding bank credit caused by the conversion of loans guaranteed by the government into government bonds. These conversions were: 1991 Dr 54.3 billion; 1992 Dr 185.0 billion; 1993 Dr 492.1 billion; and 1994 Dr 31.9 billion.

Table 33.Greece: Short-term Interest Rates(In percent)
Interbank RatesDeposit RatesShort-Term Bank Lending RateInflation
(End of month)(Monthly average)One month term deposits (End of month)on 12 month term deposits (End of month)(Monthly average)(12 month change in CPI)
(Overnight)TotalEnterprisesHouseholds
1996
January13.813.913.314.721.48.4
February13.813.813.114.621.28.4
March13.813.813.014.621.28.9
April13.413.612.914.521.28.8
May13.413.412.913.921.28.7
June14.113.613.113.921.28.4
July13.313.312.714.421.28.1
August12.412.812.413.221.18.0
September13.812.612.312.620.67.9
October13.412.812.012.520.58.0
November13.413.312.012.320.57.5
December12.612.812.011.920.27.3
1997
January12.412.411.211.319.96.8
February11.912.110.810.319.66.5
March10.411.710.110.119.36.0
April10.510.89.79.719.05.9
May10.910.69.59.618.75.4
June11.011.710.09.618.35.6
July11.511.710.39.618.25.4
August11.411.610.29.618.25.6
September11.311.010.09.518.44.9
October131.716.917.19.518.24.7
November11.123.712.711.320.15.2
December10.811.011.211.219.14.7
1998
January11.715.112.711.219.54.4
February12.813.012.811.319.84.3
March10.313.211.211.019.34.6
April13.811.911.210.518.75.3
May11.611.910.910.518.55.3
June11.213.411.110.718.65.2
July11.912.311.010.718.35.1
August12.312.411.410.718.25.0
September11.911.711.210.818.25.2
October12.011.910.610.618.04.7
November12.312.310.510.418.04.2
December10.811.910.410.017.63.9
1999
January10.911.410.29.515.620.43.7
February10.110.29.49.314.720.53.7
March10.210.29.29.214.720.63.4
April10.210.29.18.814.920.52.8
May10.810.49.18.814.820.62.4
Source: Bank of Greece.
Source: Bank of Greece.
Table 34.Greece: Official Interest Rates(In percent)
Date of

Change
Discount

Rate
Lombard

Rate
Overdraft Rate on

Banks’ Current Account

with the Bank of Greece
1992
1/119.026.0-30.0 1/
9/1819.040.0
10/2119.035.0
1993
6/1621.525.529.0
8/1321.024.529.0
10/122.026.532.0
10/2621.525.530.0
1994
5/1622.526.533.0 2/
5/3122.526.533.0 3/
6/2122.526.533.0 4/
7/1122.526.533.0
9/2821.525.030.0
11/2120.524.030.0
1995
3/3120.524.028.0
7/2719.523.027.0
8/2518.522.027.0
12/1818.021.527.0
1996
4/2217.521.026.0
12/1816.521.025.0
1997
2/1715.520.025.0
3/2815.520.025.0
5/1314.519.024.0
7/2514.519.024.0
8/1814.519.024.0
10/814.519.024.0
10/3114.519.024.0
1998
1/914.523.024.0
3/3114.519.022.0
4/105/19.022.0
8/516.022.0
12/1015.522.0
1999
1/1413.520.0
Source: Bank of Greece.

According to the size of the overdraft.

In addition, a penalty surcharge of 0.4 percent per day was imposed on bank overdrafts.

In addition, a penalty surcharge of 0.3 percent per day was imposed on bank overdrafts.

In addition, a penalty surcharge of 0.1 percent per day was imposed on bank overdrafts.

This credit facility was abolished on April 10, 1998.

Source: Bank of Greece.

According to the size of the overdraft.

In addition, a penalty surcharge of 0.4 percent per day was imposed on bank overdrafts.

In addition, a penalty surcharge of 0.3 percent per day was imposed on bank overdrafts.

In addition, a penalty surcharge of 0.1 percent per day was imposed on bank overdrafts.

This credit facility was abolished on April 10, 1998.

Table 35.Greece: Bank Interest Rates(End of period; in percent per annum)
1993199419951996199719981999
IIIIIIIVIIIIIIIVIIIIIIIVIII
Lending rates
Bank of Greece
Rediscount rate21.520.518.018.017.517.516.515.514.514.514.514.514.5 1/
Lombard facility 2/25.524.021.521.521.021.021.020.019.019.019.019.019.019.019.013.513.5
Maximum penalty rate30.030.027.027.026.026.025.025.024.024.024.022.022.022.022.020.020.0
Commercial banks
Short-term28.426.421.121.221.220.620.219.318.318.419.119.318.618.217.614.714.8
Long-term26.925.419.219.518.818.818.717.216.016.317.516.716.616.916.013.713.7
Deposit rates
Time deposits
-1 month19.616.714.213.013.112.212.110.110.010.011.211.211.111.210.49.3
- 3 months18.517.714.313.713.912.812.610.610.310.413.211.611.812.210.59.4
-12 months20.018.614.914.714.413.312.910.19.69.511.211.010.710.810.09.28.5
Interbank rates (overnight)20.117.014.113.814.113.812.610.411.011.310.810.311.211.910.810.2
Source: Bank of Greece.

This credit facility has been abolished from April 10, 1998.

The Lombard facility was introduced on June 16, 1993.

Additional interest was charged on new debit balances or on increments in existing ones at the rate of 0.4 percent per day as from October 31, 1997, and 0.2 percent per day as from December 29, 1997. As from March 31, 1998 the above surcharge has been abolished.

Source: Bank of Greece.

This credit facility has been abolished from April 10, 1998.

The Lombard facility was introduced on June 16, 1993.

Additional interest was charged on new debit balances or on increments in existing ones at the rate of 0.4 percent per day as from October 31, 1997, and 0.2 percent per day as from December 29, 1997. As from March 31, 1998 the above surcharge has been abolished.

Table 36.Greece: Interest Rates on Government Paper(End of period, in percent per annum)
Treasury Bill YieldGovernment Drachma BondsInflation
3-month6-month12-month2-year savings certificates3-year 1/5-year 1/7-year 1/10-year 1/15-year 1/(12 month change in CPI)
1996
January12.913.113.88.4
February12.512.713.414.314.815.38.4
March12.412.613.314.98.9
April12.412.613.314.88.8
May12.412.613.314.88.7
June12.412.613.314.88.4
July12.012.212.814.58.1
August11.912.112.714.38.0
September11.912.112.77.9
October11.511.712.314.08.0
November10.510.811.511.013.47.5
December10.210.511.210.712.67.3
1997
January9.810.110.910.26.8
February9.49.710.56.5
March9.29.510.310.19.69.16.0
April9.210.35.9
May8.58.89.65.4
June9.69.69.29.08.95.6
July9.69.69.59.35.4
August8.48.79.55.6
September9.59.79.79.14.9
October11.310.010.19.79.24.7
November13.311.25.2
December12.912.711.44.7
1998
January13.913.812.44.4
February13.112.74.3
March12.810.87.94.6
April10.711.18.68.65.3
May10.811.311.39.77.87.75.3
June11.811.911.710.09.08.45.2
July11.511.711.57.97.45.1
August11.513.210.89.97.85.0
September12.311.68.35.2
October12.612.611.010.84.7
November10.510.39.48.87.87.34.2
December11.110.510.310.08.37.23.9
1999
January9.59.27.66.86.16.33.7
February9.59.59.29.05.93.7
March8.98.78.88.67.16.06.33.4
April8.78.66.36.12.8
May8.78.66.55.95.92.4
June9.49.08.76.16.36.12.1
July8.97.36.52.1
August9.89.98.86.72.0
September8.7
Sources: Bank of Greece; and IMF, International Financial Statistics.

Tender rate at issue, which may vary from the coupon rate

Sources: Bank of Greece; and IMF, International Financial Statistics.

Tender rate at issue, which may vary from the coupon rate

Table 37.Greece: Exchange Rates

(Percentage changes) 1/

199319941995199619971998
Rate of Greek drachma against:
U.S. Dollar, period average-16.8-5.54.7-3.8-11.8-7.6
End of period-13.93.81.3-4.0-12.60
Euro (ECU), period average-8.0-6.7-4.1-0.6-2.3-7.0
End of period-6.6-5.6-3.0-1.0-1.7-5.4
DM, period average-11.8-7.3-7.51.11.6-6.3
End of period-7.3-7.4-6.34.10.7-6.3
Nominal effective exchange rate
Bank of Greece index 2/-9.2-7.1-3.5-1.1-1.9-5.9
IFS-7.8-6.8-3.0-1.7-2.0-5.9
Real effective exchange rate
Manufacturing unit labor costs (BoG)-5.14.07.55.14.3-4.1
Relative normalized unit labor costs (IMF)-3.21.76.05.74.04.4
Relative producer prices (BoG)0.41.10.93.70.7-2.0
Relative consumer prices (BoG)1.30.42.74.81.8-2.8
EU countries3.40.71.94.12.5-3.4
Relative consumer prices (IFS)0.51.13.34.30.9-1.8
Memorandum items:
Drachma per U.S. dollar
End of period249.2240.1237.0247.0282.6282.6
Period average229.2242.6231.7240.7273.1295.5
Drachma per DM
End of period143.7155.1165.5159.0157.9168.5
Period average138.7149.5161.6160.0157.5167.4
Sources: Bank of Greece; IMF, International Financial Statistics; and Fund staff calculations.

Foreign currency per drachma; a negative sign denotes a depreciation. excluding Luxembourg, the United States, Japan, and the EFTA counties excluding Ireland.

Non-oil trade weighted vis-a-vis 15 competitor countries (1981–84 weights).

Sources: Bank of Greece; IMF, International Financial Statistics; and Fund staff calculations.

Foreign currency per drachma; a negative sign denotes a depreciation. excluding Luxembourg, the United States, Japan, and the EFTA counties excluding Ireland.

Non-oil trade weighted vis-a-vis 15 competitor countries (1981–84 weights).

Table 38.Greece: Official Reserves(In millions of U.S. dollars; end of period)
19931994199519961997199819981999
Mar.Jun.Sep.Dec.Mar.Jun.
Gold856.3850.9871.7833.2684.5685.3679.5679.7680.1685.3858.3858.9
SDRs0.20.30.00.60.30.50.60.20.10.50.92.0
Reserve Position in the Fund156.2166.0169.0163.5153.49.6151.9151.4155.69.6339.9373.2
Foreign Exchange7,634.014,321.614,611.017,337.312,441.217,188.319,522.218,497.916,804.117,188.320,376.119,726.1
Total8,646.715,338.815,651.718,334.613,279.417,883.720,354.219,329.217,639.918,143.721,575.220,960.2
Memorandum Items:
Official reserves in months of current year imports4.87.76.67.45.76.97.97.56.87.0
Sources: IMF, International Financial Statistics; and Bank of Greece.
Sources: IMF, International Financial Statistics; and Bank of Greece.
Table 39.Greece: Balance of Payments(In millions of U.S. dollars; on a settlement basis)
199319941995199619971998
Imports, c.i.f.17,61618,74222,92924,13623,64323,247
Of which: Petroleum products1,9471,9432,2302,8802,7842,024
Exports, f.o.b.5,0345,2195,7835,7705,3725,566
Of which: Petroleum products534606491652592727
Trade balance-12,582-13,523-17,146-18,366-18,271-17,681
Of which: Non-oil-11,169-12,186-15,407-16,138-16,079-16,384
Oil-1,413-1,337-1,739-2,228-2,192-1,297
Invisible receipts17,02318,76720,77020,44419,96521,794
Travel3,3353,9054,1363,7233,7715,186
Transportation1,9201,9572,1902,2642,1042,281
Convertible drachma accounts2,2902,6402,8103,0063,0602,827
Private transfers2,4312,6573,0712,9962,9243,028
EU transfers (net)4,0854,3074,9685,0574,6224,865
Other2,9623,3013,5963,3993,4843,607
Invisible payments5,1585,3666,4756,6186,5287,757
Of which: Interest and dividends2,0862,1012,6833,0032,4822,716
Invisibles balance11,86513,40114,29613,82613,43714,037
Current account balance-717-122-2,850-4,540-4,834-3,644
As percent of GDP-0.8-0.1-2.5-3.7-4.0-3.0
Capital account balance 1/4,4026,9033,1618,6571118,527
Private capital1,6163,7872,3417,216-4,371-1,452
Long-term1,9833,4393,9307,560-1,4962,405
Entrepreneurial 2/1,6372,1253,7314,8442,6202,806
Real estate9469561,0401,044967903
Banks322966-5457
Suppliers’ credits 3/-14-19000-1
Other-618348-8471,666-5,078-6,571
Short-term-367348-1,589-344-2,874954
Banks4660-2,116-603-3,344588
Of which: Foreign exchange deposits4660-2,173-686-3,738613
Suppliers’ credits 3/-413288527259470366
Official capital2,7863,1168201,4414,4829,979
Long-term2,3412,337-254,4313,25810,954
Bank of Greece2,587-1,791-2,385-2,194-2,570-2,082
Central government-1453,8302,5966,5196,85013,452
Public enterprises-39103-190-154-979-371
Other 4/-62195-46259-44-44
Short-term445779845-2,9901,225-975
Bank of Greece-420000974-975
Central government1,028873845-2,9902510
Other-163-940000
Errors and omissions-663-415-34278177-428
Overall balance3,0206,367-304,196-4,5464,855
Financing items:
Use of IMF credit000000
Change in clearing accounts-4000-60
Change in reserves (+: decrease/-: increase)-3,106-6,738-304-3,442-5,8404,855
Allocation of SDRs000000
Changes in the valuation of official gold (+:decrease)88372334-754-1,302400
Stock of reserves (IFS)8,64715,43215,73619,17713,33719,191
Sources: Bank of Greece, Monthly Statistical Bulletin; data provided by the authorities; and International Financial Statistics.

Private and official capital, excluding errors and omissions.

Includes direct investment and enterprise borrowing abroad.

Includes official suppliers’ credits.

Borrowing by the Hellenic Industrial Development Bank, the Agricultural Bank of Greece, and the National Mortgage Bank of Greece.

Sources: Bank of Greece, Monthly Statistical Bulletin; data provided by the authorities; and International Financial Statistics.

Private and official capital, excluding errors and omissions.

Includes direct investment and enterprise borrowing abroad.

Includes official suppliers’ credits.

Borrowing by the Hellenic Industrial Development Bank, the Agricultural Bank of Greece, and the National Mortgage Bank of Greece.

Table 40.Greece: External Services and Transfers(In millions of U.S. dollars)
1995199619971998
ReceiptsPaymentsBalanceReceiptsPaymentsBalanceReceiptsPaymentsBalanceReceiptsPaymentsBalance
Services12,7316,4456,28612,3916,5865,80512,4296,5045,92513,9017,7146,187
Transportation2,1904221,7682,2644311,8332,1113941,7172,2815321,749
Travel4,1361,3232,8133,7231,2102,5133,7721,3272,4455,1861,7563,430
Investment income1,0082,683-1,6759713,003-2,0329622,482-1,5201,1942,716-1,522
Interest9862,489-1,5039082,818-1,9109292,371-1,4421,1402,545-1,405
Dividends and profits22194-17263185-12233111-7854171-117
Convertible drachma account2,81002,8103,00603,0063,06003,0602,82702,827
Other, including government2,5872,0175702,4271,9424852,5242,3012232,4132,710-297
Unrequited transfers8,039318,0088,053318,0227,538377,5017,893437,850
Private3,071313,0402,996312,9652,916372,8793,028432,985
Emigrant remittances2,98202,9822,89402,8942,81602,8162,92502,925
Other893158102317110037631034360
Public 1/4,96804,9685,05705,0574,62204,6224,86504,865
Total services and transfers20,7706,47614,29420,4446,61713,82719,9676,54113,42621,7947,75714,037
Source: Bank of Greece.

Receipts reflect net EU transfers.

Source: Bank of Greece.

Receipts reflect net EU transfers.

Table 41.Greece: External Current Account Deficit and Financing(In percent of GDP, settlement basis)
199319941995199619971998
Trade balance-13.7-13.7-14.8-14.9-15.2-14.6
Non-oil balance-12.1-12.3-13.3-13.1-13.4-13.6
Exports, f.o.b.4.94.74.64.14.04.0
Imports, c.i.f.17.017.017.817.217.417.6
Oil balance-1.5-1.4-1.5-1.8-1.8-1.1
Invisible balance12.913.612.311.211.211.6
Invisible receipts18.519.017.916.616.618.1
Travel3.63.93.63.03.14.3
EU transfers (net)4.44.44.34.13.94.0
Other10.410.710.19.59.69.7
Invisible payments5.65.45.65.45.46.4
Of which: Interest and dividends2.32.12.32.42.12.2
Current account balance-0.8-0.1-2.5-3.7-4.0-3.0
Financing:
Non-debt capital2.23.51.65.6-4.0-1.9
Change in reserves-3.4-6.80.32.8-4.94.0
Debt financing, net 1/2.03.00.91.44.38.6
Memorandum items:
GDP (drachma)21,106.023,984.026,895.029,697.732,752.235,677.4
Dr/US$ exchange rate (period average)229.3242.6231.7240.7273.1295.5
GDP(millions of US$)92,045.498,862.3116,076.8123,374.0119,946.0120,736.0
Sources: Bank of Greece; and IMF, International Financial Statistics.

Including residual items.

Sources: Bank of Greece; and IMF, International Financial Statistics.

Including residual items.

Table 42.Greece: Current Account of the Balance of Payments 1/(In millions of U.S. dollars)
199319941995199619971998
Exports of goods9,186.09,816.511,595.712,373.311,688.711,685.5
Imports of goods21,558.121,596.626,483.327,861.626,390.827,042.0
Trade balance-12,372.1-11,780.2-14,887.6-15,488.2-14,702.0-15,356.5
Percent of GDP-13.4-11.9-12.8-12.6-12.3-12.7
Exports of nonfactor services5,450.86,275.76,785.37,143.07,148.78,098.4
Of which: Tourism3,928.94,669.04,976.35,330.55,451.96,397.3
Imports of nonfactor services1,890.52,134.42,503.22,467.32,372.02,689.4
Of which: Tourism1,265.41,428.71,561.31,528.01,589.01,864.8
Balance of nonfactor services3,560.34,141.34,282.14,675.74,776.75,408.9
Percent of GDP3.94.23.73.84.04.5
Net factor income from abroad601.1874.31,046.3821.3694.0439.9
Net private transfers3,145.53,518.14,234.64,202.53,977.54,229.7
Net official transfers2,708.82,774.52,488.52,564.52,183.82,063.1
Of which: EU transfers 2/2,383.42,344.22,353.42,506.72,156.32,266.1
Balance of factor income and transfers6,455.47,166.97,769.67,588.36,855.36,732.7
Percent of GDP7.07.26.76.25.75.6
Current account balance-2,356.4-472.0-2,836.0-3,224.2-3,070.0-3,214.9
Percent of GDP-2.6-0.5-2.4-2.6-2.6-2.7
Balance of factor income and transfers (including all PIP transfers) 3/7,642.38,355.09,158.79,865.29,411.69,744.2
Percent of GDP8.38.57.98.07.88.1
Current account balance (including all PIP transfers)-1,169.5716.2-1,446.8-947.4-513.8-203.4
Percent of GDP-1.30.7-1.2-0.8-0.4-0.2
Memorandum items:
Current account excluding EU transfers-4,739.8-2,816.1-5,189.4-5,730.9-5,226.4-5,481.0
Percent of GDP-5.1-2.8-4.5-4.6-4.4-4.5
Total EU transfers (BoG)4,085.04,307.04,968.05,057.04,622.04,865.3
Percent of GDP4.44.44.34.13.94.0
Total EU transfers (Budget)4,594.04,586.04,649.95,847.84,747.94,993.6
Percent of GDP5.04.64.04.74.04.1
Total transfers to PIP 3/1,186.91,188.21,389.22,276.82,556.23,011.5
Percent of GDP1.31.21.21.82.12.5
Source: Ministry of National Economy.

National accounts presentation. Converted into U.S. dollars using the annual average exchange rate.

Excludes official EU transfers to the public investment program.

PIP: Public Investment Program.

Source: Ministry of National Economy.

National accounts presentation. Converted into U.S. dollars using the annual average exchange rate.

Excludes official EU transfers to the public investment program.

PIP: Public Investment Program.

Table 43.Greece: Selected Indicators for Trading Partners 1/(Annual changes, in percent)
199319941995199619971998
Output and demand in partner countries (Export-weighted market growth) 2/
Real GDP 3/0.42.53.01.92.02.3
Real total domestic demand 4/-1.22.82.21.52.33.0
Volume of merchandise imports 3/
Total0.15.29.91.92.02.3
Non-oil-0.66.210.85.28.84.7
Costs and prices of partner suppliers (Import-weighted) 5/
Unadjusted for exchange rate changes 6/
GDP deflators 4/3.32.72.92.51.81.9
Consumer prices 4/3.63.03.22.51.91.5
In U.S. dollar terms
GDP deflators 4/-7.63.510.41.2-8.1-0.5
Consumer prices 4/-7.33.910.51.2-8.1-1.0
Export unit values 3/
Total-7.22.811.20.5-8.5-3.6
Non-oil-6.63.312.1-0.4-8.8-2.1
Costs and prices of industrial trading partners (Export weighted, in U.S. dollar terms) 2/4/
Export unit values-8.02.411.7-0.4-9.3-2.3
Unit labor costs-8.3-2.87.70.6-10.6-2.7
World market prices for non-fuel commodities 7/
(in U.S. dollar terms)
Weighted by:
Commodity composition of Greek exports-7.416.411.5-5.44.1-12.6
Commodity composition of Greek imports5.14.1-0.3-0.8-1.1-13.3
Source: IMF, International Financial Statistics.

Except for non-fuel commodity prices (see footnote 7 below), these composites are averages of percentage changes of data for each trading partner (as specified in footnotes 3 and 4 below) weighted by their share in exports or imports, as appropriate, of Greece

Weights are proportional to 1992 exports of Greece to partner countries as specified in footnotes 3 and 4 below.

Based on data for partner countries that together account for at least 95 percent of exports or imports, as appropriate, of Greece.

Based on data for industrial partner countries only.

Weights are proportional to 1992 imports of Greece from partner countries as specified in footnotes 3 and 4 above.

That is, weighted averages of percentage changes in indices expressed in national currencies of industrial partner countries.

Based on averages of world market prices for component non-fuel commodities weighted by the 1979–1 composition of commodity trade (exports and imports) of Greece.

Source: IMF, International Financial Statistics.

Except for non-fuel commodity prices (see footnote 7 below), these composites are averages of percentage changes of data for each trading partner (as specified in footnotes 3 and 4 below) weighted by their share in exports or imports, as appropriate, of Greece

Weights are proportional to 1992 exports of Greece to partner countries as specified in footnotes 3 and 4 below.

Based on data for partner countries that together account for at least 95 percent of exports or imports, as appropriate, of Greece.

Based on data for industrial partner countries only.

Weights are proportional to 1992 imports of Greece from partner countries as specified in footnotes 3 and 4 above.

That is, weighted averages of percentage changes in indices expressed in national currencies of industrial partner countries.

Based on averages of world market prices for component non-fuel commodities weighted by the 1979–1 composition of commodity trade (exports and imports) of Greece.

Table 44.Greece: Capital Account(In millions of U.S. dollars)
199319941995199619971998
Nondebt capital flows2,0113,4891,8086,951-4,835-2,274
Enterpreneurial capital 1/1,6372,1253,7314,8442,6202,806
Real estate investment9469561,0401,044967903
Deposits with credit institutions4660-2,116-603-3,344588
Other private capital flows-618348-8471,666-5,078-6,571
Debt financing2,3893,4141,3531,7064,94810,801
Medium- and long-term2,3572,346-19.14,4373,25311,410
Bank of Greece, net2,587-1,791-2,385-2,194-2,570-2,082
Disbursements3,91500000
Amortization1,3281,7912,3852,1942,5702,082
Central government, net-1453,8302,5966,5196,85013,452
Disbursements1,2294,7384,1089,7559,51716,932
Amortization1,3749,0831,5133,2362,6673,481
Public enterprises, net-40103-190-153-979-371
Disbursements625796623554308747
Amortization6656938137081,2861,119
State credit institutions, net 2/-62195-46259-44-45
Disbursements7258031800
Amortization696346594445
Commercial banks, net322966-5457
Disbursements6645282615475
Amortization341523212018
Suppliers’ credit-15-19000-1
Short-term321,0671,372-2,7311,695-609
Bank of Greece-420000974-975
Central government1,028873845-2,9902510
Suppliers’ credit-413288527259470366
Public enterprises-163-940000
Errors and omissions-663-415-34278187-429
Memorandum items:
Current account balance-717-122-2,850-4,540-4,834-3,644
Public sector gross borrowing 3/5,7655,7954,73210,6279,82417,679
Public sector net borrowing 3/2,3292,339-254,4313,25810,955
Source: Bank of Greece.

Includes some debt-creating capital flows in the form of enterprise borrowing abroad.

Borrowing by the Helenic Industrial Development Bank, the Agricultural Bank of Greece, and the National Bank of Greece.

Medium- and long-term only.

Source: Bank of Greece.

Includes some debt-creating capital flows in the form of enterprise borrowing abroad.

Borrowing by the Helenic Industrial Development Bank, the Agricultural Bank of Greece, and the National Bank of Greece.

Medium- and long-term only.

Table 45.Greece: General Government External Debt 1/(In millions of U.S. dollars; end of period)
199319941995199619971998
Est.
Portfolio investment (bonds)9,789.113,407.814,753.417,221.019,371.924,057.2
Loans8,162.88,638.18,644.57,603.96,688.64,897.2
Long-term8,003.88,478.18,484.57,443.96,528.64,738.2
Central government7,967.48,446.38,457.07,431.26,528.64,738.2
Local government36.431.827.512.70.00.0
Suppliers’ credits159.0160.0160.0160.0160.0159.0
Military debt3,029.33,504.73,880.83,440.03,106.63,174.0
Total debt20,981.225,550.627,278.728,265.029,167.132,128.8
(in percent of GDP)22.825.823.522.924.326.7
Distribution by creditor 2/
Official creditors3,553.84,127.74,722.13,865.83,589.73,116.5
International institutions2,077.02,766.92,478.41,677.11,372.7757.3
Governments102.589.778.743.235.230.0
European Investment Bank1,374.31,271.12,165.02,145.52,181.82,329.2
Private creditors16,364.717,918.218,675.820,959.122,470.825,837.9
Bank loans4,350.04,350.43,762.43,578.12,938.91,621.7
Bonds11,755.713,407.814,753.417,221.019,371.924,057.2
Other259.0160.0160.0160.0160.0159.0
Total debt17,951.922,045.923,397.924,824.926,060.528,954.4
Memorandum item:
Private/total debt82.281.379.884.486.289.2
Sources: Bank of Greece; and Ministry of Finance.

Including external borrowing by the Bank of Greece on behalf of the Central government prior to 1994. Does not include drachma-denominated bonds held by non-residents because of the high volatility of ownership related to the operation of secondary markets.

Excluding military debt.

Sources: Bank of Greece; and Ministry of Finance.

Including external borrowing by the Bank of Greece on behalf of the Central government prior to 1994. Does not include drachma-denominated bonds held by non-residents because of the high volatility of ownership related to the operation of secondary markets.

Excluding military debt.

Table 46.Greece: External Debt Service 1/(In millions of U.S. dollars)
199319941995199619971998
A. Interest payments1,983.81,985.32,489.22,818.02,370.72,544.5
Public sector1,803.31,856.52,232.72,516.62,087.82,227.8
Private sector180.5128.8256.5301.4282.9316.7
B. Amortization3,815.24,102.24,756.46,195.96,566.46,724.2
Private nonguaranteed378.5646.70.00.00.00.0
Public and publicly-guaranteed3,436.73,455.54,756.46,195.96,566.46,724.2
C. Suppliers’ credit 2/24.022.60.30.20.10.7
Total (A + B + C)5,823.06,110.18,933.29,014.18,937.29,269.4
Memorandum items:
Debt service ratio 3/26.425.533.734.435.333.9
Current account receipts22,057.423,986.126,533.226,214.025,337.727,359.6
Source: Bank of Greece.

Excludes private nonguaranteed amortization after 1994.

Medium- and long-term only. Includes both interest and amortization payments.

Debt service (total: A + B + C) in percent of current account receipts.

Source: Bank of Greece.

Excludes private nonguaranteed amortization after 1994.

Medium- and long-term only. Includes both interest and amortization payments.

Debt service (total: A + B + C) in percent of current account receipts.

33Prepared by William Allan.
36This would also be a significant step toward modified accrual basis accounting. However, many other public administration reform measures would be necessary before the full benefits of accrual accounting for the whole government could be realized (for instance, the environment must allow public sector managers to use accrual information for asset management decisions).
38There could, on the other hand, be high returns from some of these investments, which are designed to strengthen existing enterprises with a view to possible privatization. This is largely an empirical question that should be resolved by careful analysis and monitoring through the public accounts.
39The government has made a submission to EUROSTAT regarding the status of DEKA—essentially arguing that it is a an enterprise and, therefore, not to be included as part of general government. The precise statistical treatment of DEKA operations, however, has no bearing on the recommendation made above. Effective fiscal management implies that DEKA operations be considered as a component of fiscal policy both ex ante and ex post.
40See European Commission (1999), for a description of requirements and an examination of budgetary policies needed in each member country to deal with cyclical variations while keeping within the 3 percent of GDP deficit limit.
41Limited further guidance on this aspect, based on experience in several OECD countries, is also provided in the IMF Manual on Fiscal Transparency (see paragraphs 98–101).
44European Commission, 1999 assumes that Greece will continue to make “stock-flow adjustments” of the order of 1 percent of GDP over the next 10 years and, on this basis, could be expected bring the debt ratio below the 60 percent threshold in this time frame.
45See OECD (1998), Chapter IV.
46In some countries, the need for transparency on these issues has become a binding legal requirement on all future governments of the country. In Australia, for instance, the recently enacted “Charter of Budget Honesty” requires the production of an intergenerational report every five years to help guide the country’s integrated medium-term and annual budget estimates process.

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