“Debt sustainability and more realistic fiscal targets”
The Governor of the Bank of Greece Yannis Stournaras stressed the need for “debt sustainability along with a more realistic final fiscal target after the end of the current program” in an interview for German newspaper Handelsblatt.
According to the central banker, new measures are needed to lighten the Greek debt burden, which could include extending the maturity of existing loans by a further 20 years.
Asked to comment on recent statements by Germany’s Finance Minister Wolfgang Schäuble – namely that debt relief would discourage reform efforts in Greece – the Governor of the Bank of Greece responded “no, this is a rather extreme interpretation of moral hazard”.
The specification of debt relief measures he explained was necessary because the markets need to be clear on the sustainability of the debt before Greece returns to them and because both the IMF and ECB need this information to complete their debt sustainability reports.
You may be interested
Coronavirus Greece: 2,845 new cases, 165 intubated, 12 deathsmakis - Jul 30, 2021
Greek authorities announced that the new laboratory-confirmed cases of coronavirus recorded in the last 24 hours are 2,845, of which…
Coronavirus Greece: 2,696 new cases, 157 intubated, 9 deathsmakis - Jul 29, 2021
Greek authorities announced today that the new laboratory-confirmed cases of coronavirus recorded in the last 24 hours are 2,696, of…
Greek real estate market still strong despite Covid-19 pandemic, report showsPanos - Jul 29, 2021
The Greek real estate market is demonstrating resilience in 2020 despite the fact that the pandemic had an overall negative impact on the…