Future talks on debt relief for Greece will focus on the debt's net present value, Greek deputy central bank governor Ioannis Mourmouras told a business conference on Tuesday.
Eurozone governments believe that forgiving Greece part of its debt – a “nominal haircut” – is not necessary, because thanks to very low interest, long maturities and grace periods, the net present value of the debt is manageable.
“I estimate that the basis of the discussion will be the net present value of the debt,” Mourmouras said.
He also said that once Greece completes reforms agreed with creditors under the first review of its bailout program, it could benefit from the European Central Bank’s bond-buying program.
“The participation in the ECB's QE, after the first review, will be a catalyst for the Greek economy,” he said. “In the beginning the amounts will be minor, something like 3 billion euros.”