FRANKFURT (MNI) – The following is the verbatim text of the
Statement by the Eurogroup issued following its meeting in Brussels on
Monday:

“Ministers reaffirmed their absolute commitment to safeguard
financial stability in the euro area. To this end, Ministers stand ready
to adopt further measures that will improve the euro area’s systemic
capacity to resist contagion risk, including enhancing the flexibility
and the scope of the EFSF, lengthening the maturities of the loans and
lowering the interest rates, including through a collateral arrangement
where appropriate. Proposals to this effect will be presented to
Ministers shortly.

Ministers discussed the main parameters of a new multi-annual
adjustment programme for Greece, which will build on strong commitments
to fiscal consolidation, ambitious growth-enhancing structural reforms
and a substantial privatisation of state assets. Ministers welcomed the
reinforcement of monitoring mechanisms of the programme of Greece, the
nomination of the board of the privatisation agency, which comprises two
observers representing euro area Member States and the European
Commission, and agreed to provide extended technical assistance to
Greece. They called upon the Greek government to sustain its on-going
efforts to meet these commitments in full and on time.

Ministers welcomed the decision by the IMF to disburse the latest
tranche of financial assistance to Greece, as well as the proposals from
the private sector to voluntarily contribute to the financing of a
second programme, building on the work already underway. The ECB
confirmed its position, reaffirmed by its Governing Council last
Thursday, that a credit event or selective default should be avoided.

While the responsibility for resolving the crisis in Greece lies
primarily with Greece, Ministers recognised the need for a broader and
more forward-looking policy response to assist the government in its
efforts to bolster debt sustainability and thereby safeguard financial
stability in the euro area.

In this context, Ministers have tasked the Eurogroup Working Group
to propose measures to reinforce the current policy response to the
crisis in Greece. The Eurogroup Working Group will notably explore the
modalities for financing a new multi-annual adjustment programme, steps
to reduce the cost of debt-servicing and means to improve the
sustainability of Greek public debt. This reinforced strategy should
provide the basis for an agreement in the Eurogroup on the main elements
and financing of a second adjustment programme for Greece shortly.

Ministers commit to continue negotiating with the European
Parliament the legislative proposals to reinforce economic governance in
the European Union in order to agree on an ambitious reform as soon as
possible. The reinforced governance should be fully operational without
delay.”

–Frankfurt bureau tel.: +49-69-720142. Email: frankfurt@marketnews.com

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