BUSINESS

IMF proposing significant debt relief for Greece, report claims

TAGS: Euro, Economy

The International Monetary Fund has proposed to the eurozone that Greece should not have any debt repayments to make before 2040, according to a report in The Wall Street Journal.

The Fund wants Athens to be excused from paying interest and principal for the next 24 years and for its debt repayments to be spread out between 2040 and roughly 2080.

This would involve fixing the interest rate at which the eurozone lends to Greece at the current average of 1.5 percent.

The Washington-based organization reportedly believes these interventions would keep Greece’s debt repayments to below 15 percent of GDP per year, which it believes is sustainable.

Greece currently owes eurozone members and institutions just over 200 billion euros.

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