Greek FinMin: Greece’s loan repayment extension roadmap tagged: , , , , , , ,

Greek FinMin: Greece’s loan repayment extension roadmap

Posted by keeptalkinggreece in Economy

Greek finance minister Giorgos Papaconstantinou is confident that Greece will get seven years extension to repay all loans and a four years grace period.

Speaking to journalists Papaconstantinou earlier on Monday said that:

“We will be given a grace period of four years and then seven years to repay all the loans provided by international lenders.”

Greek FinMin’s statement comes after  international lenders’ (IMF,EU) and Eurogroup’s gave assurance that the period of repayment of the  € 110 billion bailout will be extended.

 Papaconstantinou foresees the year 2024 for repayment of the loans to be received in 2013 and  the year 2021 for the loans received in 2010.  According to IMF/EU Memorandum signed with Greece, the country had to start paying back the loans in 2014.

The clauses for the repayment extension will yet to be discussed within the next two months.

With the extension of repayment the interest rate will most probably be stable at 5,8% -currently flexible at 4%.

Repayment extension will be approved by the Parliaments of EU members in January and February 2011.

72 billion euros are still to come until 2013.

“The period of grace” according to Greek FinMin, concerns the repayment of loans all together. It is said that the loan received in 2010 will be paid back in 2021 and the loans received in 2013, repayment will be due in 2024.

Papaconstantinou dismissed rumors that the memorandum would be extended as well – currently to end by 2013. He said that there will be a ‘tougher European frame” and that the IMF will make periodical controls but not similar to the ones performed by the Troika does under the present situation, or better say, until 2013.

I must definitely find out how much more more the extension period will cost the Greek taxpayer….