Merkel’s spokesman denies, she had agreed to Greek debt restructuring

Posted by in Economy

German Chancellor Angela Merkel (CDU) feels, she was misunderstood in the issue of debt restructuring for Greece. There was “no change of mind,” of the chancellor, government spokesman Steffen Seibert said Monday. Merkel does not endorse any “debt write-off”.  She did not explain anything different than during the Eurogroup meeting.  “To make more out of it,  is very imaginative,” said the spokesman.

In an interview to BILD Zeitung on Sunday, Chancellor Angela Merkel has hinted at the possibility that Germany may accept a write-off of Greek debt as policymakers attempt this week to engineer a buyback that is crucial for Greece to receive more funding.

 With Greece preparing to open bids yesterday to repurchase bonds issued earlier this year, Merkel told Bild  newspaper that euro zone leaders might consider writing off debt once the country has a budget surplus. Germany has until now ruled out such a scenario as violating European Union treaties.

 “If Greece one day can rely once again on its own revenue, without having to borrow, then we’ll have to look at this situation and make an evaluation,” Merkel said in an interview when asked about the prospect of debt forgiveness.

But it wouldn’t happen before 2014 or 2015, “if everything goes according to plan”, the German Chancellor said.

Greek, German and international media interpreted Merkel’s statement as a change in Germany’s position. Alas!