Friday December 19, 2014 Search
Weather | Athens
17o C
10o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Greece gears up for debt talks

 Stournaras to put forward suggestions on how to reduce annual repayments at Monday’s Eurogroup

Finance Minister Yannis Stournaras is due to ask his eurozone counterparts Monday to begin considering further debt relief for Greece, with the government already having drafted a number of options to reduce the repayments the country faces in the years to come.

Having achieved a primary surplus of 1.5 billion euros in 2013, Greece will demand that the Eurogroup lives up to its November 2012 commitment to examine other ways of reducing the country’s giant debt burden of roughly 175 percent of gross domestic product. It is highly unlikely, though, that Stournaras will get an immediate answer. The matter will probably be referred to the Euro Working Group, with the technical team that advises eurozone finance ministers being asked to come up with proposals on how to reduce Greece’s debt.

“Discussions will begin but there are a number of preconditions to be met, not just the primary surplus,” a high-ranking European Union official told Kathimerini. “That is why the negotiations will take place when the next [troika] review [of the Greek adjustment program] has been completed.”

Sources have told Kathimerini that there is some reluctance within the eurozone to make any firm commitments now because of the proximity to the European Parliament elections on May 25.

Reducing Greece’s debt is a politically sensitive issue in a number of eurozone countries. Also, Greece’s lenders feel that they can use the issue of debt relief for leverage over the next few months to ensure that Athens meets its structural reform commitments.

Although there is not likely to be a definitive answer regarding Greek debt lightening until the fall, Athens has worked on some proposals.

The first part of the Greek plan consists of stretching the maturity of 192.8 billion euros in loans the country has received from the eurozone to 50 years. The Greek Loan Facility (GLF) loans amount to 52.9 billion euros and have an average maturity of 17 years. The 139.9 billion euros Greece has received from the European Financial Stability Facility (EFSF) have an average maturity of 30 years.

An extension could reduce Greece’s debt repayments over the next couple of decades by about 6 billion euros a year.

The second part of the proposal consists of switching to a fixed interest rate on the GLF loans. Currently, Greece is paying a rate of 0.83 percent (Euribor plus 0.50) but as the Euribor rate is expected to rise over the next few years, Athens wants to ensure lower repayments by fixing it at a low rate.

ekathimerini.com , Saturday May 3, 2014 (17:59)  
Gov´t spokeswoman says bribery claims ´badly-played charade,´ heralds legal action if evidence not produced
Former premier Mitsotakis to meet President Papoulias to discuss political upheaval
Ship with 200 migrants off Pylos towed to Italy after passengers refuse to stop in Greece
Independent Greeks MP Haikalis claims attempted bribery for presidential vote
Importers told to pay up in advance
In the last 10 days foreign suppliers have again started asking for the full cost of commodities exported to Greece to be paid in advance by their local representatives, in a picture reminis...
Jobless rate posts steady decline
Unemployment fell to 25.5 percent in the third quarter of the year, against 26.6 percent in the second quarter of 2014 and 27.2 percent in the third quarter of 2013, according to seasonally ...
Inside Business
SOCCER
PAOK loss at Giannina brings Olympiakos to within a point
The bad losses that PAOK and Panathinaikos suffered on the road on Thursday allowed Olympiakos to gain significant ground on the table and come to within one point from the top after the mid...
BASKETBALL
Reds lose in Turkey to motivated Galatasaray
Olympiakos went down at Galatasaray 79-74 on Thursday for its second defeat in the first round of the Euroleague that ended with the Reds topping their pool with eight wins in 10 games. With...
Inside Sports
COMMENTARY
New weapons of diplomacy
Hollywood screenwriters couldn’t make it up: That Sony, one of the world’s biggest film producers, would be forced to pull a comedy about the assassination of North Korea’s dictator after a ...
EDITORIAL
Oblivious to change
The world around us is undergoing many important changes while we sit around stewing in our own juices. US President Barack Obama is actually talking with Cuba’s Raul Castro, for example, bu...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Gov´t spokeswoman says bribery claims ´badly-played charade,´ heralds legal action if evidence not produced
2. Former premier Mitsotakis to meet President Papoulias to discuss political upheaval
3. Ship with 200 migrants off Pylos towed to Italy after passengers refuse to stop in Greece
4. Independent Greeks MP Haikalis claims attempted bribery for presidential vote
5. Greek PM Samaras confronts peril putting his Greek transformation to vote
6. PAOK loss at Giannina brings Olympiakos to within a point
more news
Today
This Week
1. Independent Greeks MP Haikalis claims attempted bribery for presidential vote
2. Greek PM Samaras confronts peril putting his Greek transformation to vote
3. Ship with 200 migrants off Pylos towed to Italy after passengers refuse to stop in Greece
4. Former premier Mitsotakis to meet President Papoulias to discuss political upheaval
5. Gov't spokeswoman says bribery claims 'badly-played charade,' heralds legal action if evidence not produced
6. Europe's drama in Greece needs final act to avoid tragedy
Today
This Week
1. Juncker warns Greeks against voting 'extreme forces' into power
2. Romanos and the dilemma
3. Samaras summons bond vigilantes with euro exit talk
4. A friendly yet firm message from Pierre Moscovici
5. High stakes
6. Gap between SYRIZA and New Democracy closing, says poll
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.