FRANKFURT (MNI) – The Eurozone will grant fiscally troubled Greece
fresh aid to the tune of between 16 and 20 billion euros, German
business daily Handelsblatt reported on Thursday.
Citing unnamed high-ranking sources, the paper said these viewed
the second aid package from February in the amount of 130 billion euros
as insufficient.
Eurozone finance ministers will presumably approve the additional
funds at their meeting on November 12, according to the report.
The necessity for the fresh injection arises from Greece’s expected
failure to consolidate as planned over the coming years, the paper said.
Whereas a primary surplus of 4.5% was envisaged for 2014, this is now
seen being attained only in 2016, the paper said.
Handelsblatt further reported that the so-called Troika of ECB, IMF
and EU Commission is unable to decide whether Greece will reach debt
sustainability by 2020.
The EU Commission sees this goal – implying a debt-to-GDP ratio of
no more than 120% – achieved only in 2022, while the IMF continues to
insist on the agreed target of 2020, the paper said.
According to the paper, the interest rate paid by Athens on
financial assistance will be reduced further, while the maturity on the
loan may be extended again.
There will be no haircut, however, Handelsblatt said.
–Frankfurt bureau tel: +49-69-720-142. Email: dbarwick@mni-news.com
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