Friday August 1, 2014 Search
Weather | Athens
32o C
25o 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)  
Greece to help ´hundreds´ of Chinese leave Libya
Plan to restore Asopos River enters final stage
Manolada shooting verdict to be reviewed
Bill introduces new rules for funding of Greek political parties
Traders unhappy with turnover
Three weeks into the summer sales, traders say that purchases are not satisfactory. Shopping levels appear to be lower than during the same period last year, or on the same level at best, ev...
No rivals for Intralot as it bags racing bet permit
Intralot confirmed previous reports on Thursday by appearing as the sole bidder in a tender for the license to operate Greek horse-race betting held by state privatization fund TAIPED. Frenc...
Inside Business
SOCCER
One win and one loss in Europa League
Greece had a hit and a miss in the first-leg games for the third qualifying round of the Europa League on Thursday, as Atromitos scored a 2-1 win at Sarajevo while Asteras Tripolis lost 1-0 ...
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...
Inside Sports
COMMENTARY
In trying to conquer, Putin unites Europe
President Vladimir Putin is obliged to feign indifference to the sanctions that the European Union and the United States imposed on Russia this week. But, being the player that he is, he mus...
COMMENTARY
Summer turbulence
High summer temperatures appear to have messed with the reflexes of officials at the top echelons of Greece’s power-sharing administration. A sense of anxiety has gripped the political syste...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. One win and one loss in Europa League
2. Greece to help ´hundreds´ of Chinese leave Libya
3. Traders unhappy with turnover
4. No rivals for Intralot as it bags racing bet permit
5. Energy cost cuts even without EU approval
6. KEPE: Greek economy returned to growth in Q2
more news
Today
This Week
1. Motorists refusing to pay tolls on Corinth-Kalamata highway to be monitored
2. Euro flows reveal shift in sentiment as losses mount
3. Greece may ignore EU and lower energy costs for business, says minister
4. EU puzzles over emergency funds for euro area bank crisis agency
5. Only 5 percent of stores see brisker business during this year's summer sales
6. Fake psychic caught in Thessaloniki after gaining 35,000 from victim
Today
This Week
1. Quadriplegic woman on life support 'dies due to unpaid power bills'
2. Wine cup used by Pericles found in grave north of Athens
3. Defense Minister Avramopoulos to represent Greece at European Commission
4. World’s largest solar boat on Greek mission
5. Greece names fifth privatization agency chief in four years
6. Greek coast guard picks up 77 migrants off Myconos
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.