NEWS

German government sees Greek debt relief costing 34 bln euros

ANDREA SHALAL

TAGS: Euro, Economy

The German government estimates debt relief measures for Greece will cost around 34 billion euros over the next 10 years, depending on interest rate developments, a German newspaper reported Wednesday, citing a document from the Finance Ministry.

"The volume of additional interest rate deferments over 10 years depends on actual interest rate developments and is currently estimated by the federal finance ministry to be around 34 billion euros," the Frankfurter Allgemeine Zeitung newspaper quoted the ministry as saying in a written response to a parliamentary query.

Eurozone finance ministers in June extended maturities and deferred interest payments on 96 billion euros worth of Greek debt, about one third of the country's overall debt pile.

Greece has the highest debt-to-GDP ratio in the euro zone, at almost 180 percent of its national output. [Reuters]

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