TOKYO (MNI) – German Finance Minister Wolfgang Schaeuble said
Saturday that a first glance at proposals for a Greek debt-buy back
program leaves questions unanswered.

“I have made a habit out of not immediately commenting on every
suggestion that is fleetingly read,” Schaueble said during a press
conference on the sidelines of the International Monetary Fund and World
Bank Group meetings here. “I would have some questions about this
proposal for which I do not see any answers to.”

Schaeuble also stressed the importance of Greece remaining on track
in its current program, without adding new measures, to ensure markets
regain confidence in the country’s commitments.

ECB executive board member Jorg Asmussen told the German daily
Sueddeutsche Zeitung that the goal of a Greek buy-back plan would be to
get it on track to meet a key target set out in an international
bailout.

“At the moment it looks like Greece’s debt level will rise to well
above the target of 120 percent of GDP by 2020. Thus, one has to
consider elements that could make it possible to achieve that goal. One
possibility would be buying back debt,” Asmussen told the paper.

“A sustainable solution [for Greece] is key, the Troika is working
intensively on it,” Schaeuble said. “The agreement that we made is still
sound. we will discuss it when the Troika has completed its report.”

During his briefing, Schaeuble observed that there is increasing
recognition among advanced economies that sustainable long-term growth
is more important that manipulations to spur short-term growth.

Schaeuble stressed that there is no fundamental disagreement
between himself and IMF Managing Director Christine Lagarde on the need
for fiscal adjustments.

“Deficit reduction must be. Nobody wins confidence in your
commitment to reduce deficits if you increase them in the short-term
because you run in the wrong direction,” Schaeuble said. The necessary
speed of these steps depends on each country, he added.

–Frankfurt bureau tel.: +49-69-720 142 Email: jtreeck@mni-news.com

[TOPICS: MT$$$$,M$X$$$,M$G$$$,M$$EC$,MGX$$$,MFX$$$,MFGBU$]