ESM pre­pares to ease Greek na­tional debt

Kathimerini English - - Focus -

The Euro­peanSta­bil­ity Mech­a­nism (ESM) is set to im­ple­ment short­term mea­sures to ease Greece’s na­tional debt by the end of Jan­uary, as agreed at a De­cem­ber 5 Eurogroup meet­ing. To this end, the ESM will bor­row more funds from the mar­kets than orig­i­nally planned.

The re­vised plan for long-term bond is­sues within 2017 pro­vides for a 14 per­cent in­crease on the amount in the orig­i­nal plan, in or- der to cover the liq­uid­ity re­quire­ments re­lated to light­en­ing the Greek debt. How­ever, the size of the ESM loan is­sue has not yet been de­ter­mined.

ESM Sec­re­tary-Gen­eral Kalin Anev Janse said in an in­ter­view with Dow Jones Newswires yes­ter­day, “If there is a rea­son to change the vol­ume of bond is­sue in the fu­ture, we will change it.” Tak­ing into ac­count that all short­term mea­sures to ease the Greek debt will be im­ple­mented this year, the ESM’s tar­get for the is­sue of long-term debt in 2017 amounts to 57 bil­lion eu­ros.

Ac­cord­ing to the plan drafted by the ESM and Greece’s Pub­lic Debt Man­age­ment Agency (PDMA) on the short-term mea­sures, the light­en­ing of the debt to stem from their ap­pli­ca­tion in the long run is es­ti­mated at 40 bil­lion eu­ros, or 21 per­cent of gross do­mes­tic prod­uct.

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