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Image header Agence Europe
Europe Daily Bulletin No. 10886
ECONOMY - FINANCE - BUSINESS / (ae) greece

Dijsselbloem rules out writedown

Brussels, 11/07/2013 (Agence Europe) - On Wednesday 10 July, the head of the Eurogroup, Dutch Finance Minister Jeroen Dijsselbloem, ruled out the idea of simply writing off some of Greece's debt. In an interview with five European newspapers, Dijsselbloem spoke plainly, saying that when one country lends to the other, it has to be repaid - a principle that has been laid down and preserved. He said that if Europe opted for a writedown, then investors would think twice before lending to Greece again. Dijsselbloem said that the Eurogroup would be examining the Greek situation in April 2014, the final year of the aid programme, when Athens is hoping to return to the markets unaided. He said that the Eurogroup would see in April what would be done, adding that it was prepared to provide more help to Greece, suggesting that one way this could be done was by reducing interest rates. Greece will have little respite after getting laws through parliament required for the disbursement of the next batch of aid because in the autumn, the International Monetary Fund will raise the question of how the programme is to be financed next year. (EL/transl.fl)

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