Monday April 27, 2015 Search
Weather | Athens
14o C
09o 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)  
Pensions will not be cut, insists social insurance chief
EU Commission to revise down Greek growth forecast
Further delays will only harm economy
Cosco eyes big network from Piraeus port
Anastasiades, Akinci speak and look towards fresh push in peace talks
Cypriot President Nicos Anastasiades has spoken to the new Turkish-Cypriot leader Mustafa Akinci with a view to restarting reunification talks after Sunday’s run-off elections in the occupie...
Greece’s day of reckoning inches closer as debt payments loom
Greece will look for ways to assemble enough cash to pay its pensioners and employees this week, after euro area finance ministers on Friday said they won’t disburse more aid until bailout ...
Inside News
SOCCER
Panathinaikos beats Xanthi to rise to second
Panathinaikos jumped back up to the second spot of the Super League after its home win over Xanthi on Saturday, as PAOK slumped to third due to its draw at home with PAS Giannina on Sunday. ...
WATER POLO
Olympiakos wins Euro crown in women´s water polo
The women’s water polo team of Olympiakos won its first ever LEN Euro League at the Final Four it hosted in Piraeus by beating holder Sabadell from Spain 10-9 in Saturday’s final. After defe...
Inside Sports
ANALYSIS
If Greece falls, no one wants their prints on the murder weapon
«We're going bust.» «No, you're not.» «You're strangling us.» «No we're not.» «You owe us for World War Two.» «We gave already." The game of chicken between Greece and its international cred...
COMMENTARY
Reaching crunch time
Several cabinet ministers and MPs are no longer hiding it: They either openly admit that they are promoting the drachma or they murmur things like, “Why not the drachma?” Some go even furthe...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Anastasiades, Akinci speak and look towards fresh push in peace talks
2. Pensions will not be cut, insists social insurance chief
3. Greece’s day of reckoning inches closer as debt payments loom
4. Akinci elected Turkish-Cypriot leader, raising hopes of peace deal on island
5. Panathinaikos beats Xanthi to rise to second
6. EU Commission to revise down Greek growth forecast
more news
Today
This Week
1. Greece’s day of reckoning inches closer as debt payments loom
2. Pensions will not be cut, insists social insurance chief
3. Anastasiades, Akinci speak and look towards fresh push in peace talks
4. Greek tourism threatened by various factors
5. Agenda
6. Merkel, Tsipras agree to stay in touch to reach debt deal
Today
This Week
1. Greek government's popularity takes a hit as talks drag on
2. Europe's collision course with Greece
3. It's up to the Greek government to ensure deal with lenders, says ECB's Coeure
4. Leaving the past in the past
5. Denialism
6. The price of compromise
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2015, H KAΘHMEPINH All Rights Reserved.