Merkel and Schaeuble rule out additional haircut on Greek debt

There will be no further haircut on Greek sovereign debt, German Chancellor Angela Merkel repeated on Saturday.

“I see no haircut for Greece,” Merkel told German daily Frankfurter Allgemeine Zeitung.

“I am amazed again and again by the carelessness with which this is being talked about,” she said.

“Such a move could spark uncertainty in other parts of Europe,” Merkel warned.

Meanwhile, in an interview with Badische Neueste Nachrichten, German Finance Minister Wolfgang Schaeuble also ruled out the prospect of an additional Greek haircut, acknowledging that the recession-hit country had beaten most economic predictions.

German opposition parties have piled pressure on Merkel ahead of a national election on September 22, after the country’s central bank last week claimed that Greece would probably need more bailout funding by 2014.