According to an article published in the printed format of Spiegel, the Greek debt might be reduced more than originally expected, in the coming years.
The magazine cites troika sources who are of the opinion that chances are high, that debt percentages relative to the GDP (Gross Domestic Product) is reduced by 2022 under the original 110% rate originally agreed upon with lenders. The cause for this positive outlook is the low interest loan rates in markets, as is mentioned in the relevant article. This will, ultimately, be the reason that less money than originally expected will be needed to repay the debts. The magazine underlines that during the Greek Prime Minister’s recent visit to Berlin, he reiterated that Greece does not need a third aid package, based on the grounds that the government has the funds to cover the financial gap.
Spiegel mentions that PM Antonis Samaras specifically spoke on the subject of the 11 bn. euro from the last FSF (Financial Stability Fund) aid package which is meant to help the recapitalization of Greek banks. If banks are successful during the upcoming ECB (European Central Bank) stress tests, then the Greek government is aiming to use the 11 billion euro to cover budgetary needs.
The assent of European governments is, however, a prerequisite. That is exactly the reason why the Greek PM attempted to get German Chancellor Angela Merkel to agree on the terms. The magazine also concludes that negotiations are still ongoing, which would see the repayment timeframe of loans lengthened from 30, to 50 years.
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