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Image header Agence Europe
Europe Daily Bulletin No. 11996
Contents Publication in full By article 22 / 30
NEWS BRIEFS / Greece

Details on 'French mechanism' indexing reimbursement of Greek debt to growth

06/04/2018 (Agence Europe)The 'French mechanism', consisting of indexing the level of reimbursement of Greek debt to the country's economic growth from mid-2018 until 2050 (the ‘growth-adjustment mechanism’), is reported to provide for suspending the reimbursement of this if the average five-year growth rate was below 2.8% of GDP, according to German daily newspaper Handelsblatt of 3 April, which quotes from a European Stability Mechanism (ESM) document of the end of February.  If the annual average growth over this period was situated between 2.8% and 3.4% of GDP, the reimbursement of the debt would be partial.  It would be full with an annual average growth above 3.4% of GDP.  This measure was mentioned during the Eurogroup meeting of 22 January (see EUROPE 11944).  (LT)

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