Goldman's Greek Budget Deficit Mea Culpa. On The Dot
As expected, following earlier protestation by the Greek finance ministry, Erik Nielsen recants (but not entirely). After all, who knows what else the Greek FinMin can disclose about GS swaps and other "financial innovation" exports, should this devolve to a full blown mudslinging competition.
It appears that there has been some misunderstanding of my reference to the 2009 Greek budget numbers in the note below:
I reported the publication of the central government cash deficit of EUR 37.9bn (about 16% of GDP) in 2009, but by using the word "increase" compared with the previously reported deficit (on an accrual basis) of EUR 29.4bn (about 12.2% of GDP) (and the word "revision" in the subject line), I may mistakenly have led some to believe that the previously reported number had been changed to a new and higher number - when indeed I made comparisons between the numbers on the different definitions. (Cash is cash; while Eurostat cares about the accrual definition.) I still find it difficult to understand why the cash deficit would have been so much higher than the previously reported deficit on an accrual basis; hopefully, this will be clarified in coming days.
Apologies for any misunderstandings.