Sunday April 20, 2014 Search
Weather | Athens
17o C
11o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Greek debt-relief debate flares after release of fresh aid

By Stephanie Bodoni & James G. Neuger

European governments geared up to provide extra aid or debt relief for Greece after releasing the country’s first loan payment in six months, signaling renewed battles over how to stabilize the euro economy.

Euro-area finance ministers approved the payout of 49.1 billion euros ($64 billion) of loans through March and committed to “additional measures” in case Greece’s debt reduction veers off track.

While another cut in bailout-loan rates and an increase in infrastructure funding would top the list of extra measures, the policy makers hinted that outright debt relief -- still a taboo topic in creditor countries led by Germany -- would be on the table as well.

“Other tools are possible and it doesn’t make any sense to be more precise on these possible tools,” Luxembourg Prime Minister Jean-Claude Juncker told reporters after chairing the meeting on the Greek package in Brussels.

Thursday’s meeting concluded what European Union Economic and Monetary Affairs Commissioner Olli Rehn called an “odyssey” that started with two Greek elections in the first half of the year and concerns that popular opposition to bailout terms would force Greece out of the euro.

Greece will get 34.3 billion euros in coming days, covering 16 billion euros for bank recapitalization, 7 billion euros for the government’s budget and 11.3 billion euros to finance a bond buyback that was used to retire debt.

Another 14.8 billion euros will flow in the first quarter of 2013 as long as Greece meets conditions to be agreed on with creditors. That sum consists of 7.2 billion euros for bank recapitalization in January, plus three monthly tranches for the budget.

All told, the program will trim Greece’s debt to 128 percent of gross domestic product by 2020, still above a target of 124 percent set by euro creditors and the International Monetary Fund, according to documents released by the German Finance Ministry yesterday.

Lower loan rates and more European structural subsidies would make up 2.7 percentage points of the difference, leaving a need for “additional contingency measures” of 1.4 percentage points, according to a footnote in the German documents.

IMF Managing Director Christine Lagarde, less constrained by German political sensitivities in the run-up to a September 2013 election, said debt forgiveness is an explicit part of the understanding.

In a statement from Washington, Lagarde welcomed the euro governments’ “assurances to provide additional debt relief if necessary and provided Greece has achieved a primary budget balance in 2013.” [Bloomberg]

ekathimerini.com , Thursday December 13, 2012 (15:27)  
Greek Christians mark rare Good Friday in north Cyprus
Greece offers to help find Turkish F-16 lost in 1996
Talks lined up in wake of ‘shameful’ soccer scenes
Dimou quits To Potami over Holy Fire quip
Eurobank share offering on April 25-29
Greece's third largest lender Eurobank, which is issuing new shares to help plug a capital shortfall, said on Friday that the cash call will take place from April 25 to 29. The transaction o...
PPC to issue corporate bond of 500 mln
Public Power Corporation is planning to tap the markets after Easter with the issue of a corporate bond to draw 500 million euros. The Energy Ministry is also eagerly awaiting the issue, as ...
Inside Business
BASKETBALL
Greens lose badly as CSKA Moscow
Panathinaikos has a mountain to climb in order to reach the Final Four of the Euroleague after losing at CSKA Moscow on Friday for a second time in two days, only this time it was comprehens...
BASKETBALL
Former Red Bourousis wrecks Olympiakos´s hopes for a break
Olympiakos tried harder in Game 2 of the Euroleague play-offs in Spain, and Real Madrid was not as good on Thursday as in Game 1, but the Spaniards still emerged victorious on the night with...
Inside Sports
COMMENTARY
The placebo effect and the economy
Among the greatest mistakes made in the years of Greece’s hard landing is that citizens did not get the chance to sense that aside from austerity and pain the economic adjustment program als...
COMMENTARY
Ukraine is a crisis—but not a Cold War
Given Russia’s annexation of Crimea, the imposition of US and European sanctions, and the potential for more escalation in Ukraine, we are witnessing the most important geopolitical events s...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Greek Christians mark rare Good Friday in north Cyprus
2. Eurobank share offering on April 25-29
3. Greens lose badly as CSKA Moscow
4. Former Red Bourousis wrecks Olympiakos´s hopes for a break
5. PPC to issue corporate bond of 500 mln
6. Greece offers to help find Turkish F-16 lost in 1996
more news
Today
This Week
1. Greek Christians mark rare Good Friday in north Cyprus
2. Eurobank share offering on April 25-29
Today
This Week
1. Greece's market return mirrors return of tourists
2. Parties start announcing candidates for European Parliament elections
3. Samaras sees no need for third bailout
4. Greece startup leaders say they can’t break jobless cycle alone
5. Ground-breaking Good Friday mass signals thaw in Cyprus
6. IMF's Thomsen says Greece not fully financed to 2016
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.