Handelsblatt: ESM, Paris submit Greek debt relief plan linked with 5-year growth rate

4 April 2018
838 Views

The European Stability Mechanism (ESM) and France have reportedly submitted a plan to link debt relief for still-bailout dependent Greece with the country’s growth until 2050, Handelsblatt reported on Tuesday, citing a document dated Feb. 27, 2018.

If confirmed, the plan would mean a previous high-profile French proposal to link Greek debt relief with growth has taken a substantive form.

As previously reported when the proposal was first made by Paris, including by French President Emmanuel Macron, relief would come through extending maturities, capping interest rates on extended loans and other growth-pegged terms.

Handelsblatt claims the document foresees that repayments will be suspended if the average five-year growth rate in the country, as a percentage of GDP, is below 2.8 percent.

Partial repayments would come if GDP growth hovers at between 2.8 and 3.4 percent; full repayment is foreseen with GDP growth exceeding 3.4 percent.

The German daily notes that former German FinMin Wolfgang Schaeuble was a vocal opponent of such a prospect, with Athens now hoping that his successor, Olaf Scholz, will have a different opinion.

You may be interested

Coronavirus Greece: 842 new cases, 427 in Attica
GREECE
shares16 views
GREECE
shares16 views

Coronavirus Greece: 842 new cases, 427 in Attica

makis - Jan 26, 2021

The Greek authorities announced today 842 new cases of the new coronavirus, of which 13 were identified after checks at…

No side effects from vaccinations recorded in Greece, says Head of National Vaccination Committee
GREECE
shares16 views
GREECE
shares16 views

No side effects from vaccinations recorded in Greece, says Head of National Vaccination Committee

Panos - Jan 26, 2021

No adverse side effects have been recorded so far during the vaccination of the country's elderly citizens, said the Head…

Elon Musk launches 143 small satellites in space at the same time – New record
WORLD
shares22 views
WORLD
shares22 views

Elon Musk launches 143 small satellites in space at the same time – New record

Panos - Jan 26, 2021

Elon Musk’s SpaceX launched 143 small satellites simultaneously on Sunday, a new world record. The launch was carried out with…

Leave a Comment

Your email address will not be published.