Klaus Regling, managing director of the European Stability Mechanism, said to Financial times that Greece will not be granted large-scale debt relief adding that Greece was already benefiting from generous loan terms that were the most concessionary “in world history”.

“I think now there’s a big convergence,” Mr Regling said adding that “The Greek government realises there will be no nominal [debt] haircut — and for good reasons. The Greek government should sell what has happened already — and what might have been — very positively to their electorate, to the Greek population, because the benefits are there in any case.”

He also stated that “Greece’s debt should be measured by what Athens currently has to pay on an annual basis rather than the overall stock of debt” insisting that “private investors — who must ultimately replace bailout lending — care more about such “debt flows” than the overall debt levels, which remain the highest in the eurozone and are still rising.”