Brussels, 08/01/2014 (Agence Europe) - Greece would “ideally” like to avoid a third aid plan, Greek Finance Minister Yannis Stournaras announced in Athens on Wednesday 8 January. He also hoped for a reduction of Greek debt in the coming months, as its creditors have pledged under certain conditions. 2014 will also be the year during which Europeans should, in principle, ease the burden of Greek debt again. On this point, Greece's Deputy Prime Minister Evangelos Venizelos, stated that his country should not live “off its partners”.
While “it's too early” to discuss a third bailout plan, “ideally, we would like to do without it, but in the end the alternatives will have to be compared and we will have to see what the best options for the Greek people are”, he told European press. In any case, “there will not be any new conditions [imposed on Greece] because the situation is too difficult”, he added.
“We'd like to complete the programme and terminate it”, he said again, stating that “theoretically” there is enough money until 2016 if the financial shortfall is reduced and covered - because under its second aid plan, Greece will face a financial shortfall of “around €11 billion” until January 2016, according to Stournaras. In his opinion, this €11 billion could easily be covered. Stournaras said that there were different ways of narrowing the gap, stating that formal discussion has not yet taken place. In his view, the end of the stress tests on the eurozone banks will first have to take place. These are due to be completed in the autumn.
However, before this, Greece would like to study how to reduce its debt - which is still 175% of its GDP. The country hopes to obtain an extension of its loan maturities and a new reduction in interest rates, after a debt write-off of €107 billion agreed by its private creditors in 2012. Nevertheless, CEO of the European Financial Stability Facility (EFSF) Klaus Regling has rejected this option in an interview with German weekly news magazine Der Spiegel. 75% of Greek debt is currently held by institutional creditors.
Greece's lenders had promised to help the country again and to assess the sustainability of the debt if it recorded a primary budget surplus - which should be the case for 2013. “We are not asking for a haircut”, said Stournaras, stating that this is not the only solution. “There are many ways of reducing the debt”, he said, highlighting the possibility of cutting the interest rates and extending the pay back deadline as “much more effective measures”. He also spoke of using the European structural funds, for which the country's co-financing rates could be reduced. “These are the ways to reduce the public debt. There is a legal basis, which will be used for discussion”, he said.
“We are not asking for a haircut but a serious discussion to speak about the sustainability of the Greek loans. When Greece is able to have a primary surplus the other countries will again speak about the long-term sustainability of the Greek loans”, said Venizelos, the former minister for finance, at another press meeting a few minutes earlier. “We are not asking for favours. We want collaboration with our institutional and European partners that will take into account the results of the Greek economy today”, he said. “Nobody will lose”, he stressed, adding that Greece “is not living off” its partners. (CG/EL/transl.fl)