Thursday Jul 31, 2014 Search
Weather | Athens
32o C
25o 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)  
Opposition´s bid to remove articles from forestry bill fails
Man dies after being shot outside his house near Thessaloniki
Fake psychic caught in Thessaloniki after gaining 35,000 from victim
Motorists refusing to pay tolls on Corinth-Kalamata highway to be monitored
Euro bonds in seven-month surge as ECB boosts Italy to Germany
Euro-area government bonds were set for their longest monthly winning streak in nine years after weak data from retail sales to factory output signaled European Central Bank efforts to reviv...
Greece may ignore EU and lower energy costs for business, says minister
Greece may cut energy costs for business even without European Union approval, Development Minister Nikos Dendias said on Thursday. “We are pursuing an honest dialogue regarding the reductio...
Inside Business
SOCCER
Goalless draw at Liege puts Greens in driving seat
Panathinaikos got the upper hand in the battle for entry to the Champions League playoffs after snatching a goalless draw at Standard Liege on Wednesday. If anything, the Greek cup holders m...
SOCCER
Greek league recruits former referee Dallas
Former referee Hugh Dallas has been appointed as the head referee of the Greek Super League, the Hellenic Football Federation (EPO) said in a statement on Wednesday. The 56-year-old Scot ear...
Inside Sports
EDITORIAL
Populism eating up education
The fact that the issue of education is not topping the list of priorities for the current coalition government, but instead, has been left in the hands of incapable politicians is utterly i...
COMMENTARY
A valued but mistreated professional
I did not know much on a personal level about Dimitris Stefanou, Greece’s former administrative reform general secretary who died earlier this week at the age of 46. I did, however, have a s...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Opposition´s bid to remove articles from forestry bill fails
2. Euro bonds in seven-month surge as ECB boosts Italy to Germany
3. Man dies after being shot outside his house near Thessaloniki
4. Greece may ignore EU and lower energy costs for business, says minister
5. Fake psychic caught in Thessaloniki after gaining 35,000 from victim
6. Only 5 percent of stores see brisker business during this year´s summer sales
more news
Today
This Week
1. Euro flows reveal shift in sentiment as losses mount
2. EU puzzles over emergency funds for euro area bank crisis agency
3. Motorists refusing to pay tolls on Corinth-Kalamata highway to be monitored
4. Only 5 percent of stores see brisker business during this year's summer sales
5. Fake psychic caught in Thessaloniki after gaining 35,000 from victim
6. Greece may ignore EU and lower energy costs for business, says minister
Today
This Week
1. Quadriplegic woman on life support 'dies due to unpaid power bills'
2. Hedge fund Dromeus turns Greek tragedy to triumph with 160 pct gain
3. Defense Minister Avramopoulos to represent Greece at European Commission
4. Front-line threats
5. Wine cup used by Pericles found in grave north of Athens
6. Greece names fifth privatization agency chief in four years
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.