Monday , June 24 2024
Home / News / Economy / Germany rejects capped interest rates, open to discuss Greece’s Debt Relief after 2018

Germany rejects capped interest rates, open to discuss Greece’s Debt Relief after 2018

I told you so a couple of days ago: whatever the question, Schaeuble’s answer is always NEIN! German Finance Minister Wolfgang Schaeuble confirmed me when he rejected the proposal of the European Stability Mechanism for Greece’s Debt Relief, capped interest rates and purchase of part of the Greek debt to the International Monetary Fund.

According to German weekly Der Spiegel, “German Finance Minister Wolfgang Schaueble does not want to provide debt relief to Greece through long-term interest rate guarantees,” a source close to Shcaeuble revealed.

Schaeuble has rejected a proposal from the euro bailout fund to cap interest rates on Greek debt at 2% until 2020, regardless of how debt develops with credit market trends, according to the weekly.

However, the minister is open to discussing longer debt payment schedules, lower interest rates and deferred payments, but only in 2018 when the Greek reform package is completed, the magazine reported. The ministry declined comment on the report.

At the start of the week, euro zone finance ministers had agreed to try and reach a final agreement about Greek debt relief when they meet again on May 24 to discuss a review of Greek financial reform by the International Monetary Fund (IMF), European Central Bank and European Commission.

The ministers also agreed on the possibility of relief for Greek debts in excess of 300 billion euros, should this be necessary.

ESM proposal here

Check Also

BoG: Greece’s primary surplus 1.6 billion euros in Jan-May, says BoG

The primary surplus stood at 1.6 billion euros in the five-month period January-May compared to …

3 comments

  1. Eternally, the question arises of “Greek Reforms”. Very hard to resolve now in the 2017s, following the 1970s up to the 2010s: when, at last the truth struck us forcibly. We had enjoyed forty years of apparently great prosperity: the ‘bread and circuses’ regimes of PaSoK and Neo Democracy, when the truth was hidden and governments, alternated in power, with bad leadership building up the dreadful debt and the inefficient administration amid greed and corruption, recognised and ignored.

    Now, who pays? Not those who lied and stashed away their ill-gotten gains in foreign accounts, and who rely on being beyond the power of Greek law while they live in comfort and security.

  2. Dr. Nein sounds like a very negative person to me (either that or enjoys being a broken record): Like all negative people he is: in denial; blames others; uses negative filters; enjoys the misery of others; doesn’t have friends; exudes an air of superiority; has unresolved issues; is a pessimist; doesn’t give anything back; is bitter and resentful; is perpetually angry…but hey! NEIN, NEIN, NEIN, NEIN, NEIN, NEIN, NEIN, NEIN, NEIN…

  3. This drama is opperating on a snatch & grab as much as you can, as quickly as possible, because it will not last, basis.
    Just how long do you think that “Austerity” the squeezing of as much money & assets, from as many places that they can, is going to go on before the people put a stop to the looting of their nations wealth. Even the village idiot – o vlakas sto horio – knows when it is time to cut & run for his life.
    The refugees are not any kind of humanitarian outreaching to the needy, but a deliberate measure to create chaos & confusion & even civil unrest to the point of Martial Law, so that they, the thieves – the EU leaders & bankers can get away with it.
    All this has been done before – The Great Depression of the 20’s- 30’s was a deliberate shutdown of goods, services & currency by the Establishment, so as to take back EVERYTHING that they believed was actually theirs.
    And a nice little cull of the over-population as well.
    Nothing last forever.