ATHENS (MNI) – The Greek government is discussing the possibility
of stretching out repayment of its loans from the Eurozone and the
International Monetary Fund, Finance Minister George Papaconstantinou
said Monday on television.

“It is an ongoing discussion. There is no decision, but this is
completely different from the issue of restructuring the Greek debt,
Papaconstantinou said. “This discussion has started because everybody
sees that for two specific years — 2014 and 2015 — the state goes
suddenly from paying off E40 to E50 billion a year, to E70 [billion].”

He added that officially the Greek government has not asked for an
extension because such a move would “send the wrong signals” to the
markets.

He went on to say that, “if at one point the decision is taken, it
must come as a reward for the good work we’re doing and not because we
could not achieve our targets.”

The comments from Papaconstantinou came a day after IMF Managing
Director Dominique Strauss-Kahn said he would agree to an extension of
the repayment agreement if Europe also agreed. He added that currently
there were no concrete plans to stretch out the payments.

In order for the deal to be extended, the 15 eurozone countries
that are collectively contributing E80 billion of the E110 billion
emergency loan package must give their assent.

Yesterday, a spokesperson of the German finance ministry rejected
the idea, saying that Germany was against any payment extensions.

Recent data for the period January to September showed that the
government’s deficit reduction effort missed its target for the first
time since the austerity plan was adopted, dropping 31.1% y/y compared
with the goal of 36.9%.

During the same period, expenditures were reduced by 7.1% y/y
against a target of 7.8%, also falling short for the first time.

Revenues increased by 3.7% y/y well below the downwardly revised
annual target of 8.7%.

Investors seem increasingly worried that Greece will not be able to
finance its borrowing needs after the end of the loan agreement in 2013.
According to preliminary data, Greece’s public debt would reach 150% of
GDP in 2014, but the figure is expected to be revised upward by
Eurostat.

–Angelika Papamiltiadou, a_papamiltiadou@hotmail.com; +306-937-100-071

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