Klaus Regling: Credit line would improve market reaction to Greece

Chief of the ESM and ESFS, Klaus Regling, believes Greece should be protected from negative market reactions

Klaus Regling, the first Managing Director of the European Stability Mechanism (ESM) and European Financial Stability Fund (ESFS) CEO, told Politis newspaper that a precautionary credit line will be set up for Greece following its exit from the bailout to protect it from negative markets.

He said that an agreement for this would be made by December 8 otherwise the installment worth 1.8 billion euros from the ESFS will not be given to Greece. He said that an agreement would improve the market’s reaction to Greece and open the way to stability and a viable recovery.

Mr. Regling said that the program for Cyprus would continue until March 2016 and that the ESM and troika have yet to be officially informed by the Cypriot government regarding a possible early exit from its memorandum.