Eurogroup’s Dijsselbloem says Greek debt relief talks can resume

AMSTERDAM: Eurogroup chief Jeroen Dijsselbloem said talks about initial Greek debt relief measures would be resumed after being frozen mid-month over Greece’s decision to pay pensioners a Christmas bonus.

Dijsselbloem said creditors had agreed to recommence talks after he received a letter from Greek Finance Minister Euclid Tsakalotos reaffirming the government’s commitment to reforms demanded as part of Greece’s third bailout.

“I’m happy to conclude that we have cleared the way ... to go ahead with the decisionmaking procedures for the short- term debt measures, which will be conducted in January,” Dijsselbloem said in a statement.

The Eurogroup, or group of finance ministers of countries that are members of the single European currency, had agreed in early December to work towards a limited debt relief package for Greece, mostly in the form of measures to extend low-interest rate loans.

The package would have amounted to roughly a 20 per cent cut in Greece’s 200 billion euro debt load by 2060, while putting off a decision on more fundamental relief until after German and Dutch elections in 2017.

Eurozone creditors froze the talks in protest at the Greek government’s pensions bonus, saying they had not been consulted.

Leftist Prime Minister Alexis Tsipras said the payout to retirees and other pre- Christmas perks were warranted, given that the country had surpassed targets for spending cuts and tax revenues in 2016. — Reuters