Regling: Greek govt knows that a debt haircut is not possible

There will be no haircut of the Greek debt, head of the European Stability Mechanism Klaus Regling clarified during his interview to Finnish newspaper Kauppalehti. However, he said that it is possible to consider providing more grace periods.

More specifically, the head of ESM said there could be a Greek debt stretching, but he ruled out the possibility of a haircut adding that the Greek government knows that.

“We have done many things for Greece and we can still do something more, but not a haircut,” he said noting the ESM could improve the lending terms if Greece fully respected its commitments and completed agreed reforms.

Asked on the role of the IMF in the Greek program, Mr. Regling stated that he believes there could be an agreement “because Europeans partners of Athens and the IMF want to help Greece”.

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