BUSINESS

Talks on Greek debt to continue at EWG on Thursday

TAGS: Economy, Finance

Crucial discussions between the institutions on Greek debt relief are expected to continue at Thursday’s Euro Working Group (EWG) meeting in Paris, but time is running out for the International Monetary Fund (IMF) to participate in the country's bailout program which expires on August 20.

Making debt sustainable will help Greece restore its credibility in the markets once it exits its third bailout program this summer.

Sources from Maximos Mansion said the IMF’s decision not to contribute financially in the country’s program is likely irreversible.

Athens hopes for a positive sign from Thursday’s meeting that the road has opened for an agreement on the formula that will be adopted on the country’s debt pile.

The institutions have declared their intention to complete the talks before the next Eurogroup meeting on June 21.

Greece believes it is possible to achieve a deal that would extend the maturities of the loans by 10 years.

On Wednesday, the head of the Eurogroup, Mario Centeno, said in a letter to eurozone finance ministers which summarised the discussions held on May 24, that the package of debt relief measures will be implemented at the end of the programme “to the extent necessary, conditional on its successful completion.”

He also urged Greece to complete all prior actions in time for the next meeting in June.

“This will allow us to take a political decision in June on the closure of the review and of the programme, including on possible debt measures, the post-programme framework and the disbursement of the last tranche,” he said. 

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