Tuesday October 21, 2014 Search
Weather | Athens
24o C
11o 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)  
Inmate injured in Patra prison yard brawl
SDOE to probe Proton Bank loan to Thessaloniki businessman
Gang importing heroin into Greece busted
Wage dispute hurts gov’t unity before troika return
Greek current account surplus widens in August
Greece's current account surplus widened in August compared to the same month last year, boosted by higher tourism receipts, according to balance of payments figures released by the central ...
Applications for heating oil subsidy set to start
The Finance Ministry is expected to open the online system for heating oil subsidy applications on the website of the General Secretariat for Information Systems (www.gsis.gr) on Tuesday. Ta...
Inside Business
BASKETBALL
PAOK fans stop coach Markopoulos´s move to Olympiakos
Olympiakos is once again in the lookout for a new coach after the refusal of PAOK to release Soulis Markopoulos, while Panathinaikos defeated Kolossos on Rhodes on Monday to become the only ...
BASKETBALL
Reds lose to Nea Kifissia, search for new coach
Nea Kifissia recorded the biggest win of its short history in the top flight defeating Olympiakos 68-67 on Sunday, in a Basket League weekend marred by the abandonment of the Thessaloniki de...
Inside Sports
INTERVIEW
The past, present and future of the Greek debt crisis
For a decade, until mid-2012, Josef Ackermann was the CEO at Deutsche Bank. It was a position that earned him the nickname “shadow chancellor” of Germany and allowed him to play a decisive r...
COMMENTARY
Self-opposing coalition
Even though a number of polls see the total percentage of the two ruling parties trailing that of SYRIZA, New Democracy and PASOK are still in government and the leftists in opposition. This...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Greek current account surplus widens in August
2. Inmate injured in Patra prison yard brawl
3. SDOE to probe Proton Bank loan to Thessaloniki businessman
4. Applications for heating oil subsidy set to start
5. Gang importing heroin into Greece busted
6. PAOK fans stop coach Markopoulos´s move to Olympiakos
more news
Today
This Week
1. The past, present and future of the Greek debt crisis
2. Self-opposing coalition
3. Gang importing heroin into Greece busted
4. Gutsy rectors
5. Applications for heating oil subsidy set to start
6. SDOE to probe Proton Bank loan to Thessaloniki businessman
Today
This Week
1. Possible third figure in Amphipolis mosaic may be uncovered shortly
2. Greece to contribute 1 mln towards Gaza reconstruction
3. Greece nearing bailout exit, says gov't spokesperson after IMF talks
4. Istanbul skyscraper casts shadow over Greece's banking ambitions
5. Coalition shooting itself in the foot
6. GPO poll gives SYRIZA clear lead over New Democracy
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.