The Organisation for Economic Co-operation and Development (OECD) believes that the additional money to be given and the Greek debt restructuring agreed upon recently by European leaders will offer Greece the necessary time to move on with its reforms.
However, the Greek debt has not been reduced in sufficient enough levels to make the markets be considered safe and sustainable. The OECD predicts that the Greek debt will be reduced to 100% of the GDP by 2035, down from 140% in 2010, believing the country will be incapable of raising a targeted 50 billion euros through privatizations by 2015.
However, if Greece manages to collect this money with a small delay, then the public debt may be reduced to around 60% of the GDP by 2035. OECD claims that they will support the efforts of Greece, but the government must move on with its reforms and deregulation of professions, boost the labor market and improve the tax collection mechanism.
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