Tuesday September 2, 2014 Search
Weather | Athens
29o C
23o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Eurozone continues with talks on reducing Greek debt

Eurozone finance ministers held a teleconference on Saturday to discuss strategies for making Greek debt sustainable ahead of a new meeting in Brussels on Monday, when they will be under pressure to come up with a definitive solution.

There was no immediate statement after the teleconference, which was part of the continuing discussions that took place over the weekend, including further technical work from the Euro Working Group, aimed at striking a formula that is likely to reduce Greek debt from a projected 189 percent of GDP next year to 124 percent in 2020.

Prime Minister Antonis Samaras returned to Athens on Saturday from the European Union leaders’ summit in Brussels, where the 27 politicians discussed the EU budget. Samaras used the opportunity to speak in person to 12 of his counterparts, including German Chancellor Angela Merkel, French President Francois Hollande and Italian Premier Mario Monti. Sources said Samaras attempted to stress to fellow leaders the economic difficulties faced by Greece, describing the “post-Hiroshima” fallout of the crisis.

Eurozone finance ministers failed to reach a conclusive agreement on how to deal with Greek debt on Tuesday and are to hold their third meeting in two weeks in Brussels this Monday. The solutions that are likely to be on the table are lending Greece money to buy back its bonds at a reduced rate on the secondary market, the European Central Bank returning the profits it made on Greek bonds and Greece’s partners reducing the interest rate on their bilateral loans to Athens.

Kathimerini understands that German Finance Minister Wolfgang Schaeuble had been in a position during last week’s Eurogroup to advocate a drastic reduction in the interest rates on bilateral loans to Greece, as well as the extension of their maturities, to help make Greek debt sustainable. But he ended up adopting a more conservative position after the German government’s coalition partners, the CSU and FDP, advised Chancellor Merkel that such an initiative would not have their support and would not pass through the German parliament.

Beyond domestic politics, one factor that could complicate any deal is that the International Monetary Fund seems to be advocating that any bond buyback scheme should happen immediately, possibly even before December 14, when T-bills worth 3.4 billion euros are due to mature. This would mean a fresh delay for Greece’s loan tranche, which would be held up until the buyback has been completed.

Greece is hoping to receive the whole 44 billion euros due to be released from the bailout program next month. As things stand, all of this money will go to cover immediate obligations. Some 24 billion euros will be used to complete the bank recapitalization program, 9 billion will be invested in the buyback scheme, 4.5 billion is needed to cover the primary deficit, 3.5 billion has been slated to reduce state arrears, 3.4 billion is needed to cover four-week T-bills that mature next month and 500 million euros will go toward covering a bond that matures on December 21.

ekathimerini.com , Saturday November 24, 2012 (20:40)  
Greek singer-songwriter Antonis Vardis dies aged 66
Red tape cut in application process for Greek ID cards
Fake doctor offered outdoor consultations in Katerini
Man, 67, arrested on child abuse charges in Aigio
Deadline looms for struggling Cyprus Airways
Potential buyers of Cyprus Airways have until Wednesday to submit nonbinding offers for the loss-making national carrier, with Ryanair and Aegean Airlines in the running. Ireland’s budget ca...
Bank of Cyprus expects to relist on Nicosia, Athens exchanges
Bank of Cyprus, the Cypriot lender which recapitalized last year using depositors’ savings, said late on Monday it expected its shares to relist on the Cypriot and Athens stock exchanges by ...
Inside Business
Grateful Saviola thanks Olympiakos, joins Verona
Former Argentina international Javier Saviola has thanked Greek champions Olympiakos for the "beautiful moments" during his season-long stint in Greece as he left the club to join Serie A ou...
SOCCER
Greece defender Papadopoulos fires parting shot at Michel
International defender Avraam Papadopoulos suddenly quit Olympiakos on Monday to join Turkish club Trabzonspor, and fired a parting shot at Olympiakos manager Michel putting the blame on the...
Inside Sports
COMMENTARY
Politicized archaeology
Let us suppose that archaeologists discover that the tomb uncovered in Amphipolis was not the resting place of Roxana or Nearchos, but of Alexander the Great. Let us assume, that is, that ar...
EDITORIAL
Moderating expectations
Politics is, to a great extent, all about managing expectations, and anyone who raises that bar too high or too fast is at serious risk of disappointing and losing the people’s favor. In a c...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Deadline looms for struggling Cyprus Airways
2. Bank of Cyprus expects to relist on Nicosia, Athens exchanges
3. Greek singer-songwriter Antonis Vardis dies aged 66
4. Red tape cut in application process for Greek ID cards
5. Fake doctor offered outdoor consultations in Katerini
6. Man, 67, arrested on child abuse charges in Aigio
more news
Today
This Week
1. Politicized archaeology
2. Rain and storms with hail expected in many parts of Greece
3. Reforms to dominate Greek talks in Paris, debt relief talks later, says source
4. New committee formed to assess progress of deregulation in closed-shop professions
5. Moderating expectations
6. Trial over 2013 murder of pawn merchant starts in Athens
Today
This Week
1. Thessaloniki mayor Boutaris sworn in wearing yellow star amid Golden Dawn protests
2. The battle against progress
3. Attack on gay couple in Athens leaves one man needing surgery
4. Strong undersea quake occurs off island of Milos, felt in Athens
5. Greek quest for debt relief faces hurdles in Paris
6. Hardouvelis, ECB executive discuss bank program, stress tests
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.