BERLIN (MNI) – The head of the European Financial Stability
Facility (EFSF), Klaus Regling, sees no need to increase the funding of
the EFSF or to restructure the debt of Greece, he said in a radio
interview aired Thursday.
Regling told German Deutschlandfunk (DLF) radio that Spain and
Portugal are currently able to refinance themselves on capital markets.
“But even if they should come [to the EFSF], then the money would
be sufficient,” Regling said. “In this regard, there is no acute need to
increase the EFSF,” he stressed.
Regling acknowledged, however, that there are currently discussions
underway to make all of the EFSF’s E440 billion in capital actually
available for lending. In order to preserve its triple-A rating the EFSF
can currently dispose of only around E250 billion, he noted.
Regling reckoned that markets were too pessimistic on the fiscal
situation of Greece.
“Markets are assuming that Greece needs a debt restructuring,” the
EFSF head observed. “But that is not backed by the actual developments,
because the [economic reform] program in Greece is going well.”
“We assume that by implementing these reforms the creditworthiness
of Greece will rise again,” he said.
–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com
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