German Chancellor Angela Merkel is rejecting talk of a new debt writedown for struggling Greece and insisting that the country is making good progress.
Greece last April received a first round of debt relief that wiped 100 billion euros ($130 billion) off the sum the government owed to private sector investors, who took heavy losses on bondholdings.
The possibility of granting Greece a second round of debt relief has frequently been floated. But asked in an interview with Germany’s Sueddeutsche Zeitung and five other European newspapers whether there will be a second writedown, Merkel replied: “I don’t see it.”
She said in the comments published Tuesday that Greece has moved forward «thanks to the very reform-oriented Samaras government.” Merkel added: “I assume that debt sustainability will continue to be assured.” [AP]