Greece is preparing for a new bailout deal this month consisting in a debt relief that will help make its return to bond markets credible. According to a Greek government official, cited by Reuters, the deal will come along with a cash buffer and EU monitoring. The Greek officials are in Paris for talks with IMF lenders and euro zone representatives. According to Greek officials the deal is only weeks away and the success or the program will give the country the possibility to regain sustainable market access beyond 2018 and 2019. Right now there is risk of contagion from difficulties in the Italian bond market where the politic situation has driven the yields higher si the Greeks wants to decouple from Italy. Greece is hoping to get a three-pillar strategy of a cash buffer, post-bailout surveillance by the European Commission and debt relief to manage a credible return to markets. The Helenic government also wishes to bring up the cash buffer to EUR 20 billion, which would allow it to … [Read more...] about Greece looks for more debt relief this month for credible return in the bond markets
Debt relief programs
Eurozone finance ministers will decide next month on all measures, including further debt relief, needed for Greece to exit its bailout successfully, their chairman said on Thursday (24 May). Greece is due to exit the rescue programme – its third since 2010 – in August, and its partners in the bloc are anxious to ensure it can do so on a financially sustainable basis. “We will decide on all that is needed to ensure a successful exit… by August. This is our top priority regarding Greece,” Eurogroup head Mario Centeno told a news conference. Greece has enormous potential and is getting ready to stand on its own feet when it exits its EU bailout in August, Eurogroup leader Mario Centeno told EURACTIV.com’s media partner Athens-Macedonian News Agency (ANA) in an interview. For the 21 June talks to be successful, Athens has to pursue the last reforms agreed with eurozone creditors to put its economy on a firmer growth path. “That is a … [Read more...] about Eurozone to decide terms of Greek bailout exit, debt relief in June
By April 23, 2018, 8:20 AM EDT The European Commission confirmed on Monday that Greece beat its bailout targets again last year, strengthening the government’s case against demands to bring forward additional tax measures originally scheduled to kick in starting 2020.Europe’s most indebted state achieved a budget surplus before interest and other one-time payments equal to 4.2 percent of its gross domestic product in 2017, more than twice the target set by its bailout auditors for a 1.75 percent of GDP surplus, the European Union’s executive arm said. Greece achieved a general government budget surplus for the second year in a row, according to the bloc’s statistical service Eurostat.“This good news is a welcome shot in the arm for Greece ahead of the crucial Eurogroup discussions that must prepare a positive conclusion to the program this summer,” European Commissioner for Economic Affairs Pierre Moscovici said in a statement, referring to … [Read more...] about Greece Beats Bailout Targets Again as Debt-Relief Talks Loom
Greece’s creditors are getting closer on a deal to ease the country’s debt burden, according to Eurogroup President Mario Centeno.Greece’s 86-billion euro ($106-billion) bailout program is set to run out in August, and creditors are working on finding a compromise on debt repayments that would help to manage the country’s financing needs after it stops receiving international aid. A debt deal would also allow the International Monetary Fund to participate in the current bailout.“The positions today are much closer than they used to be before,” Centeno, who is Portugal’s finance minister and chairs the meetings of his euro-area counterparts, said in an interview in Washington. “We still have a final mile to go but there is a positive sentiment around the table so I think that reflects a true willingness to be part of the program.”Further easing Greek debt is a key precondition for the Washington-based IMF before it can participate in … [Read more...] about Centeno Says Sides Closer as Greece’s Creditors Mull Debt Relief
IMF dubious Germany's new finance minister, Olaf Scholz, is more likely to join a European effort to reduce Greece's debt, but political dangers abound. Published on April 3, 2018 8:45 pm France and the European Union are pressing ahead with plans to implement debt relief for Greece now that Germany’s former Finance Minister Wolfgang Schäuble, who preached austerity instead of bailouts, is no longer holding the purse strings in the coalition government. European finance ministers are scheduled to meet at an informal meeting in Sofia, Bulgaria at the end of the month, and there is growing hope that Germany’s new finance chief, Olaf Scholz, will be more flexible than Mr. Schäuble was in agreeing to debt relief. Greece’s debt-to-GDP ratio has risen from 160 percent at the end of 2012 to almost 180 percent this year and is becoming more untenable than ever. Mr. Scholz, a former mayor of Hamburg and a Social Democrat, is believed to be more liberal on … [Read more...] about With Mr. Austerity gone, will Germany approve debt relief for Greece?