The German Ministry is in agreement, at least in principle, with the ESM’s proposal regarding the restructuring of Greece’s debt, according to an article in Handelsblatt.
The German financial newspaper’s claims concur with the Wall Street Journal in that the ESM proposal includes an extension on the repayment of certain bonds in 30 years and the use of interest rate swap. In addition, the creditors will give Greece an extra margin of four years on some old loans and abolish the penalty on non-valid repayment.
As a result, Greece will “save” 220 million Euros in 2017. If all the measures the ESM proposes are taken, the Greek debt will be reduced by 21,8% of the GDP by 2060.
According to the Handelsblatt: “In principle, the German Finance Ministry appears to be in favor of the solution.”