Friday August 1, 2014 Search
Weather | Athens
32o C
25o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Greek coalition sees relief in debt deal despite pending questions

Prime Minister Antonis Samaras described a deal struck during the early hours of Tuesday morning between the eurozone and the International Monetary Fund as one that would secure Greece’s place in the single currency by releasing more bailout funding and reducing its debt significantly in the years to come.

Samaras and his coalition partners showed themselves to be pleased with the outcome of the deal in Brussels, where eurozone finance ministers and the IMF struck on a formula that would reduce Greek debt from a projected 189 percent of GDP next year to 124 percent in 2020 and lower than 110 percent by 2022.

The agreement will lead to several methods being adopted to reduce Greek debt. These include reducing by 1 percentage point to 0.69 percent the annual interest rate charged by other eurozone members for bilateral loans to Athens and extending by 15 years the maturities and deferring for 10 years the interest on loans from Greece’s second bailout.

Also, the European Central Bank will return via national central banks the profits it makes on Greek bonds purchased through its SMP program, and Greece will launch a program to buy back at 28 to 30 cents on the euro some 63 billion euros in privately-held government bonds. This should reduce debt by about 20 billion euros, or 11 percent of GDP.

The plan also allows for further measures to reduce Greek debt to be taken once it produces primary surpluses.

A number of details regarding how the debt reduction program, particularly the bond buyback, will work were not clarified after the Eurogroup. Greece, for instance, will need about 10 billion euros to execute the purchase of its bonds from investors but it’s not clear how it will get this money.

Also, there is no certainty that the buyback will hit the targets that the eurozone finance ministers used to calculate the trajectory of Greek debt over the next few years. IMF Managing Director Christine Lagarde said that the Fund would not approve the release of its part of the loan tranche in mid-December until the buyback has been completed.

The Eurogroup agreed to release next month just 34.4 billion euros of the 43.7 billion Athens was due to receive this year. The remaining 9.3 billion euros will be released in three tranches at the beginning of 2013.

In a televised speech on Tuesday night, Samaras welcomed the Eurogroup deal, saying that it signaled “the end of a very dark period for Greece.” He said the agreement had helped Greece to “regain its credibility, lay the foundations for Greek debt to become sustainable and secure its position in the eurozone,” adding that it “rewards the sacrifices of the Greek people and opens the road to growth.”

Socialist PASOK leader Evangelos Venizelos was more cautiously optimistic, describing the deal as “undoubtedly positive” in a speech to his MPs but noting that certain details required consideration such as the terms of a bond buyback scheme.

Democratic Left leader Fotis Kouvelis welcomed the deal as “decisive step toward securing the country’s continued presence in the eurozone.”

The three leaders are to meet at 10 a.m. on Wednesday ahead of a cabinet meeting scheduled for 1 p.m.

ekathimerini.com , Tuesday November 27, 2012 (21:54)  
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.