Brussels, 23/11/2012 (Agence Europe) - Eurozone finance ministers are pulling out the stops to ensure agreement is reached on Monday 26 November on how to ensure sustainability of the Greek debt. They will hold a videoconference over the weekend to continue the work of the Euro Working Group.
Reuters says agreement is in the offing between the eurozone and the International Monetary Fund whereby Athens would have to cut its sovereign debt to 124% of GDP in 2020, four percent higher than what was agreed for the second Greek bailout earlier this year (120% in 2020) on which the IMF refuses to budge. The necessary finance has already be found to help the country cut its debt to 130% of GDP by 2020, so the eurozone will now have to find additional measures, estimated at some €10 billion, in order to reach the 124% target for 2010, explains Greek finance minister Yannis Stournaras. The options being considered to this end are: Greece buying back its bonds at a third of their face value; extending the maturity of the current loans; and an interest rate payment holiday for Greece on its debt.
When agreement is reached, the eurozone will arrange the disbursement of the next batch of aid, some €44 billion. Upon arrival on Thursday at the special summit on the EU budget, the Greek prime minister, Antonis Samaras, said Greece had done its part of the deal and the eurozone and IMF should now do theirs. He said as much to the head of Eurogroup, Jean-Claude Juncker and the head of the Euro Working Group, Thomas Wieser, at his meeting with them that same day. Germany and Finland said they were expecting agreement to be reached on Greece at the Eurogroup meeting on Monday. (EL/transl.fl)