–Adds Comments On Growth For Greece, EU Support, Greek Public Opinion
BRUSSELS (MNI) – Greece’s Prime Minister Lucas Papademos said
Friday that based on the information he had so far, the participation of
private sector creditors in the country’s debt swap and reduction
proposal (PSI) “is significant.”
However, Papademos refrained from providing a specific percentage
figure. Greece is aiming for a target of 90% participation, though it
may decide to go ahead with the deal if participation is at least 75%.
Beneath that level, the government in Athens has the option of
activating collective active clauses (CACs), which would force
recalcitrant bondholders to sign onto the deal, but could trigger
payment of CDS on Greek bonds.
Speaking at a press conference here in Brussels after the end of
the EU leaders’ summit, Papademos was asked to comment on whether there
was a “Plan B” for Greece in case the PSI deal falls through.
“The participation of the private sector will be adequate. I don’t
think I can add anything further to this today,” he replied. “If the
contrary is proven, then we will act accordingly. But this is a case
study and there is no point in discussing today any alternative plans.”
On Thursday night, Eurogroup president Jean-Claude Juncker told
reporters that there “was a plan B” in case the PSI falls short, but he
did not reveal any specifics. Today, French president Nicolas Sarkozy
said he was unaware of such a plan.
Papademos echoed the comment of Greek Finance Minister Evangelos
Venizelos, who said that the “PSI is a very attractive offer for
investors.”
The Greek prime minister said he expected the PSI procedure to be
concluded by March 9, and the new lending agreement with Greece’s
official sector creditors to be signed by March 14. Asked to comment on
whether his coalition government should be seeking to extend its
mandate, Papademos replied: “After the government concludes its work, we
will discuss the election date.”
Greece is widely expected to hold a national election next month,
but one has not been officially called.
In other comments, Papademos said the summit that ended today had
given him greater hope for a positive outcome to the Greek crisis.
“I leave Brussels more optimistic and with the certainty that
things can lead to a better situation”, he said. But he added that
growth-boosting measures should be immediately implemented in Greece to
stop “the vicious cycle of recession and unemployment.”
Papademos said his EU counterparts had given their vote of
confidence to Greece’s efforts. There was a consensus at the summit that
a growth plan is needed along with the budget cutting measures, he
added.
He added that the focus of the new measures will be to combat the
country’s growing unemployment, which is especially high among young
people; to boost liquidity and investment; and combat tax evasion and
the unofficial economy.
He reiterated his opposition to the idea of designating a single EU
Commissioner to supervise the execution of the Greek budget, and said
such a plan is not on the table. However, he noted that the troika
mission to Greece — composed of officials from the European Commission,
IMF and ECB — will be enhanced. The presence of the Commission’s task
force, which provides technical support, will also be enhanced, he said.
The Greek premier defended the austerity measures being imposed on
Greece, saying that recent opinion polls show about 67% of the Greek
people want the plan to work and that they understand the need to
re-launch the economy based on sound economic fundamentals and not on
borrowing.
–Brussels newsroom, a_papamiltiadou@hotmail.com
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