Monday Jul 28, 2014 Search
Weather | Athens
31o C
23o 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)  
Two arrested for attempted rape against 15-year-old in western Greece
Samaras vows to stand by Cyprus in reunification talks
Tree collapses in village square, killing nine-year-old boy
Samaras to meet Cypriot President Anastasiades in Athens
Parliament’s Budget Office says third bailout may be needed
Parliament’s State Budget Office has ruffled some feathers again after claiming that is appears likely Greece will require a third bailout package to avoid a default. In its quarterly report...
Ryanair ‘not particularly interested’ in Cyprus Air
LONDON – Ryanair boss Michael O’Leary said on Monday that the airline was not particularly interested in acquiring troubled Cypriot carrier Cyprus Airways, which he said had huge legacy issu...
Inside Business
VOLLEYBALL
Volleyball national team second in European League
Much as the national volleyball team tried to repeat in the finals of the European League the feat it had achieved in the semifinals, it failed to overturn the advantage Montenegro had got f...
SOCCER
Ranieri says he has little to change in Greek national team
The Hellenic Football Federation (EPO) presented Claudio Ranieri as the new Greece coach for the next couple of years, after the Italian manager signed his contract in Athens on Friday. “I l...
Inside Sports
COMMENTARY
Weighing all the factors
Certain people in the know continue to believe that snap elections will take place in the fall. Prime Minister Antonis Samaras is obviously aware of this trend, which is why he told Parliame...
EDITORIAL
Clear rules, for everyone
If we want to deal with the economic crisis, we need clear rules. A large number of individuals and businesses have amassed huge debts they cannot service. And some worrying symptoms have al...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Two arrested for attempted rape against 15-year-old in western Greece
2. Parliament’s Budget Office says third bailout may be needed
3. Ryanair ‘not particularly interested’ in Cyprus Air
4. August 2 expected to be Greek tourism’s D-day
5. Investors took Monday off as bourse turnover struggled
6. Greek privatization fund to get new management, says Finance Ministry
more news
Today
This Week
1. Defense Minister Avramopoulos to represent Greece at European Commission
2. Euro inflation seen testing ECB patience as stimulus takes time
3. Tree collapses in village square, killing nine-year-old boy
4. Maziotis moved to Diavata Prison in Thessaloniki
5. Multi-bill containing prior actions ready for Parliament
6. Minister mulls fixing food and drink prices at non-private beaches
Today
This Week
1. Climber dies in Mount Olympus fall
2. Greek sovereign debt at 174.1 percent of GDP in first quarter
3. Unequal after death
4. Hedge fund Dromeus turns Greek tragedy to triumph with 160 pct gain
5. Quadriplegic woman on life support 'dies due to unpaid power bills'
6. Front-line threats
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.