ESM chief rules out another debt write­down

Kathimerini English - - Front Page -

The head of the eu­ro­zone aid pro­gram for cri­sis-hit mem­bers has ruled out a fur­ther debt write­down for Greece in an in­ter­view with a Ger­man online news mag­a­zine yes­ter­day. “There will not be a debt hair­cut,” Klaus Regling, head of the Euro­pean Sta­bil­ity Mech­a­nism (ESM), the fund set up to help eu­ro­zone coun­tries at the height of the fi­nan­cial and debt cri­sis, told Spiegel Online. His com­ments fol­low a call by Greece’s For­eign Min­is­ter Evan­ge­los Venize­los for an eas­ing of re­pay­ment con­di­tions in a Ger­man news­pa­per at the weekend. Regling said that the ESM was Greece’s big­gest cred­i­tor. “Its loan terms are at 30 years, the in­ter­est rate slightly over 1.5 per­cent. For the com­ing 10 years the in­ter­est was de­ferred. All that cor­re­sponds, eco­nom­i­cally, to a debt hair­cut,” he said. He added that the room for ma­neu­ver for a fur­ther eas­ing of terms by cred­i­tors was nar­row. “The In­ter­na­tional Mone­tary Fund is ba­si­cally not chang­ing its con­di­tions,” he said. But he added that there could pos­si­bly be some small lee­way on Greece’s bi­lat­eral loans from its first aid pack­age, al­though that would have to be de­cided by the in­di­vid­ual states who had pro­vided the credit.

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