BUSINESS

Brussels defends debt relief

ELEFTHERIA KOURTALI

European Commission spokeswoman Mina Andreeva

TAGS: Finance

The European Commission on Wednesday defended the Greek debt relief measures that the Eurogroup decided in June, in a manner of response to the International Monetary Fund, which had deemed the debt easing inadequate to render the debt sustainable in the long term.

In a regular press update, Commission spokeswoman Mina Andreeva stressed that the IMF forecasts on Greece are permanently pessimistic and that the Fund has in the past been forced to revise them.

“The European Commission, the European Stability Mechanism and the European Central Bank have made their own assessment and we, as Europeans, are funding the program and our conclusion is that the debt relief is sufficient,” the Bulgarian official stated.

She went on to highlight the eurozone’s commitment to re-examine the Greek debt in the future should further easing measures be required: “We have also said we will examine the issue again in 2032,” Andreeva said.

The IMF said in its Debt Sustainability Analysis on Tuesday that the eurozone’s optimistic scenarios on the Greek growth and primary surpluses make the debt’s long-term sustainability uncertain, particularly after 2038.

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