Wednesday March 4, 2015 Search
Weather | Athens
20o C
11o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Greek FinMin in Frankfurt as report suggests loan maturities may be extended

A man pulls a cart filled with plastic and cardboard scavenged from rubbish bins which he then sells for recycling, on the highway outside Aspropyrgos, an industrial area in western Attica, on Wednesday.

Greek Finance Minister Yannis Stournaras heads to Frankfurt on Thursday, where he will meet Bundesbank and Deutsche Bank officials, with the discussion about further debt relief for Greece having apparently been rekindled.

Finance Ministry sources admitted on Wednesday that talks about extending the maturities on eurozone loans to 50 years had been “on the table for the past few months.” The admission came after Bloomberg reported that two people with knowledge of the discussions said the option was being debated.

The unnamed sources told the agency that the potential offer would involve maturities on the loans extended to Greece on a bilateral level and by the European Financial Stability Facility (EFSF) being stretched from 30 to 50 years and the interest rate on the money received as part of the country’s first bailout being cut by half a percentage point.

For more detailed discussions to take place, the current review of the Greek consolidation program has to be completed by the troika. Inspectors are expected back in Athens later this month, with both sides aiming to complete the procedure by the March 10 Eurogroup. Then, in April, Eurostat would have to confirm that Greece achieved a primary surplus in 2013. Government sources have suggested this figure could even surpass 1.5 billion euros, higher than previously expected.

Nevertheless, an extension of loan maturities would have little immediate impact on Greek debt repayments. The repayment of 53 billion euros in bilateral loans made as part of the first bailout signed in 2010 does not begin until 2020, while the loans from the EFSF, which amount to 144.6 billion euros so far, have to be repaid from 2023. However, analysts estimate that an extension of maturities to 50 years would result in annual debt servicing costs falling by about 4 billion euros from 2023 onward.

As for the reduction to interest rates, this would only apply to the bilateral loans as the interest Greece pays on loans from the EFSF is equal to the rate at which the fund borrows. The interest charged on the bilateral loans is the three-month Euribor rate plus 0.50 percent, which takes it up to around 0.80 percent. Reducing this by 0.50 percent would mean the government saving about 270 million euros annually.

ekathimerini.com , Wednesday February 5, 2014 (20:22)  
Merkel says eurozone has hands full with existing Greek bailout program
Premature to talk about 3rd Greek bailout, EU´s Juncker says
Chomsky: EU reaction to Greek bid to reverse austerity was ´extremely savage´
Schaeuble: Greece needs to fulfill terms of agreement before further aid
Germany says third Greek aid package not on Eurogroup agenda
Eurozone finance ministers have no plans to discuss a possible third rescue package for Greece when they meet on Monday, a German finance ministry spokesman said on Wednesday after a Spanish...
Success of Greek reforms rest on implementation, says Lagarde
The success of Greece's reform plan depends on the framework that is put in place and how the overhaul is implemented, International Monetary Fund chief Christine Lagarde said on Wednesday. ...
Inside Business
SOCCER
Super League restarts, but behind closed doors
Deputy Minister for Sports Stavros Kontonis announced on Wednesday the resumption of the Super League this weekend after it was suspended last week following crowd trouble at the Athens derb...
SOCCER
Marinakis fines Olympiakos players
Olympiakos president Evangelos Marinakis on Monday fined the team 500,000 euros for disappointing performances and called on them to make a «sacrifice» to win trophies or leave. "Olympiakos ...
Inside Sports
FOCUS
Greek officials have ruffled feathers in Brussels for not having good diplomatic manners
Strapped for cash and under pressure to deliver on reforms, Greece's new radical government has ruffled feathers in Brussels by not respecting the diplomatic niceties of the negotiating tabl...
COMMENTARY
Up the creek without a paddle
One of the issues that dominated the country’s pre-election debate was whether SYRIZA, which eventually won the vote, had worked out a plan B. It was clear from the start that its much-hyped...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Super League restarts, but behind closed doors
2. Germany says third Greek aid package not on Eurogroup agenda
3. Success of Greek reforms rest on implementation, says Lagarde
4. Merkel says eurozone has hands full with existing Greek bailout program
5. Premature to talk about 3rd Greek bailout, EU´s Juncker says
6. Chomsky: EU reaction to Greek bid to reverse austerity was ´extremely savage´
more news
Today
This Week
1. Up the creek without a paddle
2. Greek officials have ruffled feathers in Brussels for not having good diplomatic manners
3. Panousis says no official decision on undocumented migrants
4. More Germans booking holidays in Greece, tourism chief says
5. For Greece, a lesson from Ireland, Kenny says
6. ECB glimpse of Cyprus debt shows limits of bank cleanup
Today
This Week
1. Greece to make international protest over Turkey reserving Aegean air space
2. A fierce battle looms
3. SYRIZA feeling the pain
4. The Greek tax drama
5. The unlikely winners of Greece's surrender on euro
6. Tsipras reversal draws Greek sympathy as party rumblings rise
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2015, H KAΘHMEPINH All Rights Reserved.