The [GREEK DRAFT BUDGET]
ByThe [GREEK DRAFT BUDGET] targets 7% deficit to 2011 GDP against the
7.6% agreed in the EU/IMF deal according to Deputy Fin Min Sachinidis or
Eur 16.285bn 2011 deficit from Eur 18.508bn this year. Athens will also
cut spending by 7.6% in 2010, the state budget gap is seen at 6.9% in 2011
vs 8.2% this year & the general govt gap at 7% next year vs 7.8% in 2010.
Greece is targeting 10% revenue growth this year, the 2011 revenue is
predicted to be Eur 56.3bn (an increase of 8.7%) whilst 2011 spending is
expected to be Eur 67.6bn (up 2.2% on the year) with the rise said to be
due to higher interest payments. 2011 GDP is f/c to contract 2.6% & seen
shrinking 4% this year, unemployment is f/c at 11.6% vs 9.5% in 2009 & up
to 14.5% in 2011 whilst inflation will avg 4.6% this year followed by 2.2%
next. Debt-GDP is f/c at 132.7% in 2010 & rising to 142% next year. So
far, markets seem to like it; 10-yr GGB yield -15 bp on the day
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