Monday September 1, 2014 Search
Weather | Athens
29o C
23o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Stournaras heads to Eurogroup in search of debt relief

Finance Minister Yannis Stournaras heads to Monday’s Eurogroup with the aim of asking for further debt relief for Greece.

"In the context of presenting a new growth model for Greece in the next 10 years … I will talk of the need to look at ways of reducing debt further,» Stournaras told The Guardian newspaper.

"I will remind my colleagues of the decision that was made in November 2012 to begin such talks if Greece gets a primary surplus."

Having achieved a primary surplus of 1.5 billion euros in 2013, Greece will demand that the Eurogroup lives up to its November 2012 commitment to examine other ways of reducing the country’s giant debt burden of roughly 175 percent of gross domestic product.

It is highly unlikely, though, that Stournaras will get an immediate answer. The matter will probably be referred to the Euro Working Group, with the technical team that advises eurozone finance ministers being asked to come up with proposals on how to reduce Greece’s debt.

“Discussions will begin but there are a number of preconditions to be met, not just the primary surplus,” a high-ranking European Union official told Kathimerini. “That is why the negotiations will take place when the next [troika] review [of the Greek adjustment program] has been completed.”

Sources have told Kathimerini that there is some reluctance within the eurozone to make any firm commitments now because of the proximity to the European Parliament elections on May 25.

The first part of the Greek proposals regarding debt relief consists of stretching the maturity of 192.8 billion euros in loans the country has received from the eurozone to 50 years. The Greek Loan Facility (GLF) loans amount to 52.9 billion euros and have an average maturity of 17 years. The 139.9 billion euros Greece has received from the European Financial Stability Facility (EFSF) have an average maturity of 30 years.

An extension could reduce Greece’s debt repayments over the next couple of decades by about 6 billion euros a year.

The second part of the proposal consists of switching to a fixed interest rate on the GLF loans. Currently, Greece is paying a rate of 0.83 percent (Euribor plus 0.50) but as the Euribor rate is expected to rise over the next few years, Athens wants to ensure lower repayments by fixing it at a low rate.

"What we need is to reduce our annual financial needs,» Stournaras told The Guardian. «We don't want to inflict losses on our partners – we want a mutually beneficial solution."

ekathimerini.com , Monday May 5, 2014 (11:50)  
Europe drafts emergency energy plan with eye on Russia gas shut-down
Greek PM vows to bring down unemployment
Greek economy shrinks at slowest pace since late 2008
Prospect of Greek grand prix back on the agenda; huge investment needed
Hardouvelis optimistic ahead of Paris meeting
The Greek government has stepped up its efforts in advancing the structural measures it has committed to, Finance Minister Gikas Hardouvelis said Monday ahead of a two-day meeting with troik...
Erdogan visits Turkish-occupied Cyprus
Recep Tayyip Erdogan was on Monday expected in Turkish-occupied northern Cyprus in his first official visit as new Turkey President. Erdogan, who was sworn in as his country's first popularl...
Inside News
SOCCER
Fulham striker Mitroglou set to re-join Olympiakos
Greek champions Olympiakos Piraeus are set to re-sign Kostas Mitroglou on loan from English second tier club Fulham after the striker arrived in Athens for talks on Sunday. An Olympiakos spo...
SOCCER
Tough draw for Greek sides in Europa League group stage
Following Thursday night’s high, when all three Greek teams competing in the Europa League made it into the group stage of the competition, a harsh reality struck Friday as they found out wh...
Inside Sports
ANALYSIS
EU’s three big problems all linked
The outgoing president of the European Council, Herman Van Rompuy, said at the weekend that his successor, Donald Tusk, currently Poland’s prime minister, faces three big challenges: the sta...
COMMENTARY
A great president
I fully understand the country’s need for political stability, a necessity which makes the election of a president by the current Parliament absolutely imperative. At the same time, however,...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Europe drafts emergency energy plan with eye on Russia gas shut-down
2. Greek PM vows to bring down unemployment
3. Hardouvelis optimistic ahead of Paris meeting
4. Erdogan visits Turkish-occupied Cyprus
5. Greek economy shrinks at slowest pace since late 2008
6. Laid-off cleaners to protest outside police headquarters
more news
Today
This Week
1. Excavation work at Amphipolis reveals section of marble mosaic floor
2. A great president
3. Don’t feed the zombies
4. Greek officials meet to fine tune strategy for Paris talks with troika
5. Greek economy shrinks at slowest pace since late 2008
6. Deputy Education Minister Koukodimos resigns
Today
This Week
1. Attack on gay couple in Athens leaves one man needing surgery
2. The battle against progress
3. Thessaloniki mayor Boutaris sworn in wearing yellow star amid Golden Dawn protests
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.