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ESM: Eurogroup to possibly discuss debt relief, last debt repayment in 2059

“If prior actions are completed, the Eurogroup next week will decide on final disbursement to Greece and possibly on additional debt relief,” managing director of European Stability Mechanism, Klaus Regling said on Saturday. In a lengthy interview with daily Ta Nea, Regling unfolded some aspects of the Greek issue.

“We expect that there will be the final assessment of the programme, there could be the decision on the final disbursement under the assumption that all prior actions have been done and there will also be a debate about additional debt relief measures. There is a possibility that the Eurogroup could come to conclusions on additional debt relief on top of the debt relief from which Greece has already benefited over the last few years.”

his is also not “The medium-term measures that were outlined in May 2016 are now on the table. And then there is a long-term commitment to help more in the future, if Greece needs additional help. This commitment will remain in place but this is a general commitment to deal with the very long time horizon that we have. Already today, the last repayment to the EFSF and ESM will take place in 2059. That is the situation now. This is a long period of more than 40 years. Necessarily, such a long time horizon means that we are dealing with a very high degree of uncertainty. Therefore, it is very valuable for Greece to have such an additional long-term commitment from the other countries of the euro area that more support could be made available in the future if needed. So, I would not expect that this long-term commitment would be more specified now. And I think that this is also not needed.”

Among others Regling said:

• When the program ends, there won’t be a new memorandum. But there will be – like other countries that have received money from the European institutions – surveillance after the end of the program.

• Continued reform implementation, together with potential additional debt relief and the existence of a cash buffer will allow Greece to return to markets successfully and sustainably.

• It is increasingly unlikely that the IMF will participate financially in the program, but of course the IMF will continue to be engaged in Greece.

• Given that more money was disbursed to Greece than to other countries, and the debt relief already granted and possibly granted additionally, the surveillance will be tighter than in other countries.

• The enhanced surveillance that is under discussion requires an assessment every 3 months and it will be in place for a number of years only. For how many years has not yet been decided.

Full interview in English here.
PS Unfortunately, most of us reading Regling’s interview right now will not be able to hail the last debt repayment in 2059…. The ESM managing director too.

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One comment

  1. Another 41 years of slavery to the Banksters of Brussels? Unbelievable!!! Does any one really believe that the Euro (or even the dollar) will make it to 2029? World needs a total crash by 2020 to start over with an honest economy based on something other than pixels. Hope I live to see it. Worth stocking up on popcorn.