ESM chief indicates lower surplus may be possible

ESM chief indicates lower surplus may be possible

European Stability Mechanism (ESM) chief Klaus Regling has indicated that Greece's lenders may consider reducing high primary surplus targets if the debt-laden country can overshoot growth targets after 2020.

Speaking at a press conference during a meeting of eurozone finance ministers in Helsinki on Friday, Regling said that Greece has made a commitment to the current target of 3.5 percent of gross domestic product for 2019 and 2020 and could seek a reduction after that if lending rates drop and growth surpasses targets outlined in the country's post-bailout program.

This is the first time eurozone lenders have suggested that a lower surplus target may be possible.

Regling also welcomed the new Greek government's economic reform program and hailed a decision to repay a chunk of high-interest loans to the International Monetary Fund before their maturity date.

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