tagged: austerity measures, bailout, default, german finance minister, Greece, interest rate reduction, repayment extension, Wolfgang Schaeuble

German FinMin: Greece’s repayment extension agreement maybe not sufficient

Posted by keeptalkinggreece in Economy

The March 11- agreement on loan repayment extension and interest rate reduction may not be enough to restore the economy of Greece, said German Finance Minister Wolfgang Schaeuble on Saturday. Speaking at a press conference in Codollo, Hungury after the Eurogroup finance ministers meeting Schaeuble stated that should Greece be unable to return to the markets by the middle of 2012, its European partners will find a solution.

If Greece is unable to partially finance its needs in the financial markets as of mid-2012, as planned, its European partners will find a solution, German Finance Minister Wolfgang Schaeuble said Saturday.

Asked about potential solutions should Greece fail to regain market access by mid-2012, Schaeuble said the issue will be discussed at the latest in June when the next review of the Greek program is due.

Schaeuble acknowledged that Greece’s upcoming refinancing needs are “significant” but said any problem that emerges could be tackled with “reasonable cooperation.” European authorities will “closely monitor” whether the stretched out repayment period will be sufficient and will “draw the necessary consequences.”

However, Schaeuble said that speculating about problems that have not occurred yet would not be helpful in the current circumstances.

As regards the terms for the Irish bailout program, Schaeuble said it was up to the “Irish authorities — similar to Greece — to make proposals on what [Ireland] will be willing to do for its part.” Without such proposals, a change in terms would unlikely be forthcoming, he said.

Schaeuble was not ready to discuss the upcoming program for Portugal, noting that preparations were only beginning. 

(Source: IMarketNews)