BRUSSELS (MNI) – Greece will have to implement additional fiscal
and structural measures in order to receive a second bailout package
from its Eurozone partners worth E130 billion, Eurogroup president
Jean-Claude Juncker said at a press conference in the pre-dawn hours of
Tuesday morning.
Juncker also conceded that the EU is pushing for a lower interest
rate of 3.5% on new Greek bonds with maturities up to 2020 that are to
be issued by Athens as part of a debt restructuring deal with its
private creditors. The EU’s desire for a lower rate, shared by the IMF,
is the main disagreement with the creditors’ group, represented by the
International Institute of Finance.
Asked to comment on a report about Greece’s debt sustainability,
reviewed earlier in the evening by Eurozone finance ministers, Juncker
said that the Greek program was “off track.”
“We discussed the Greek situation and reviewed the process of the
[private sector debt reduction deal], and hope to reach a common
understanding in the next few days, based on the decision taken by the
EU on October 26,” Juncker said. “With the agreement, the Greek debt
[ratio] should decline to 120%, and this should take place with a
voluntary bond exchange [that yields a] 50% nominal value haircut.”
The inspectors of the EC, ECB, IMF will return to Athens to agree
on new parameters for the second rescue package, which would provide
Greece with E130 billion in loans through 2014.
Commenting on recent reports that suggest Greece could leave the
Eurozone, Juncker emphasized that “there was absolutely no discussion
and no divergence of opinion around the table.”
“Greece’s future is clearly in the euro area” he added.
EU Commissioner Olli Rehn appeared confident that the discussions
between the troika and the Greek government would be concluded soon. “In
the coming weeks, we will see results on the second [bailout] program,”
he said.
–Brussels bureau; a_papamiltiadou@hotmail.com
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