The euro-zone member states are planning a new round of debt relief for Greece that would allow the country to profit from low interest rates, Handelsblatt has learned.
The currency union’s bailout fund, the European Stability Mechanism or ESM, would secure Greece against rising rates by offering the country bonds with a 30-year maturity as well as interest-rate swaps, according to an ESM document obtained by Handelsblatt.
In addition, the euro zone would give Greece an additional four years on old loans and waive a penalty, all of which would save Athens €220 million ($233 million) in the coming year.
All the measures taken together would reduce Greece’s debt by 21.8 percent in relation to its gross domestic product by 2060, according to ESM calculations.
The German Finance Ministry supports the plan in principle, according to Handelsblatt sources.