Exiting the third bailout: An evaluation
On the occasion of Greece’s exit from the third adjustment program, it is worth evaluating its results. The first finding is that the program failed to achieve its ultimate objective: market re-access. Despite the recent debt relief provided by official creditors, Greece’s 10-year borrowing cost remains prohibitive at 4.2 percent, way above the Portuguese (1.8 percent) or the Spanish (1.4 percent). The country remains vulnerable to external shocks due to its high debt, limited growth potential and low credit rating. Let’s examine the program targets and assess whether they were achieved.