BRUSSELS (MNI) – There are no plans to prolong aid loans to Greece
past the original date set out when the deal was agreed earlier this
year, a European Commission spokesman said on Tuesday.
“There is no discussion as such and I think even the Greek finance
minister has said that there hasn’t been such a request. It seems to be
a debate through the media,” spokesman for Economic and Monetary
Affairs, Amadeu Tardio told reporters.
“What I am saying is that there is no discussion going on between
the parties about such an eventuality,” the spokesman said.
Greece lost access to capital markets earlier this year, after
revealing its budget deficit was more than four times the EU’s
stipulated 3% limit. It was offered a loan package worth E110 billion
over three years by the International Monetary Fund and its Eurozone
partners in exchange for implementing a strict austerity plan.
Questions about a possible loan extension were asked after IMF
Managing Director Dominique Strauss-Kahn told reporters the IMF would be
prepared to give Greece more time to repay its loans to the IMF if
European nations agreed.
Greece’s Finance Minister George Papaconstantinou said Monday night
on Greek television that Athens was mulling such a possibility because
of an anticipated spike in Greek debt payments in 2014 and 2015. But he
said no decision had been taken.
“Markets are reacting positively, so there is no case to envisage
such an extension,” Tardio said, adding that the tightening of Greek
sovereign debt spreads in recent weeks has been “remarkable.”
He said Greece was on track to delivering goals set out in the
austerity plan and should be able to fully fund itself in the markets by
2012, as projected.
–Brussels: 0032 487 (0) 32 803 665, echarlton@marketnews.com
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