German Finance Minister Wolfgang Schaeuble has said the possibility of some kind of debt relief for Greece will be discussed over coming days but he doesn’t see much room for maneuver.
Germany is ruling out an outright debt cut, arguing that it would be illegal under European treaties. It’s also resisted calls for any debt relief for Greece unless the country undertakes serious economic reforms.
The International Monetary Fund has argued that Greeces debt needs restructuring, if not by a so-called haircut then through other means, such as lengthening the time the country has to pay its debts.
At a conference in Frankfurt, Schaeuble noted that a private-sector debt restructuring was carried out in 2012, which went further than IMF proposals at the time.
Schaeuble said "the room for maneuver through debt reprofiling or restructuring is very small." [AP]