Confidential proposals drawn up by the eurozone’s bailout fund European Stability Mechanism could reduce Greece’s debt load by about a fifth in 2060. The six -page document, dated November 25th 2016, outlines measures that that could be taken in the near future to reduce Greece’s large debt load.
According to The Wall Street Journal that saw the confidential document:
The paper proposes to ease Greece’s debt load by extending some maturities and locking in the interest on some of Greece’s loans to shield it from future interest-rate increases.
The cumulative impact of these measures in 2060 would cut the ratio of debt to gross domestic product by 21.8 percentage points.
An official eurozone analysis in May projected debt-to-GDP of 104.9% in 2060, under a baseline scenario in which Greece fully implements its bailout program.
“This is an ESM working document that has not yet been endorsed by the euro area finance ministers. The document comes in response to the mandate the ESM was given by [euro area finance ministers] on May 25 to work for the short-term on a first set of measures to improve the debt sustainability for Greece,” an ESM spokesman said.
He said ESM Managing Director Klaus Regling would present the proposals to eurozone finance ministers at their next meeting on Dec. 5. Eurozone officials expect them to win the ministers’ backing.
The measures outlined would be implemented between now and the end of the bailout in mid-2018. (full story)
I am sure Regling prepared his proposal in consultation with German finance minister Wolfgang Schaeuble.
Meanwhile reports coming from Washington and Brussels claim that the IMF has two different proposals for its participation: a 2-year austerity program or a 4-year program. It allegedly considers to set Greece’s Primary Surplus at 2% of GDP after 2018. The IMF proposal will be also discussed on the EUROGR meeting on Monday.
I see no agreement on December 5th Eurogroup meeting. And I am not the only one. I heard on Greek TV that an extraordinary eurogroup meeting could take place some time later in December.
Under the Christmas tree with Dijsselbloem, Schaeuble and Lagarde? A not so fine idea.
PS by 2060 I will be dead and buried and have turned into “dust to dust” long ago.
20% ???? Disgracefully generous. . . .
That’s it what they’re doing all the time, programming programs for excuse to have control and austerity forever, every stupid’s stupid question should be why the IMF should join a program after it is already finished but stupid is already too stupid to understand that 86 billion was a lie and some tens of billions were never given, ignored like all the billions Greece – “that never will pay back” – paid back all these years but how can it be that stupidity gots voting rights?