Comprehensive Agreement on debt you look for Greece – The Economist

Comprehensive Agreement on debt you look for Greece – The Economist

Europe and Germany in particular, observe with care the first steps of the new Greek government, in its bid to an agreement at European level to alleviate its debt, which currently represents about 175% of Gross Domestic Product (GDP) Greek .

The Greek Finance Minister Yanis Varoufakis, said in Paris that wants a global agreement on the financial situation of Greece before the end of May.

“Until then we will not ask for new loans” to Greece’s creditors said during a joint press conference with his French counterpart, Michel Sapin, in the first leg of his European tour to seek support in seeks to reduce the country’s debt.

Varoufakis also said he wants to visit soon Berlin and Frankfurt, headquarters of the European Central Bank (ECB) and other European cities such as Madrid, to explain the position of Athens on conditions of debt.

Europe and Germany in particular, wisely observed the first steps of the new Greek government, in its bid to an agreement at European level to alleviate its debt, which currently represents about 175% of Greek Gross Domestic Product (GDP).

Varoufakis said he wanted to meet with Wolfgang Schäuble, German finance minister meeting which he called “essential” because of the importance of its economy in Europe.

ECB agrees

Meanwhile, Erkki Liikanen, member of the board of the ECB, highlighted the importance of reaching an agreement to extend the Greek rescue deal before the end of February, or the bank Central can not continue lending money to banks Hellenes.

The European bailout program for Greece part of a package of 240,000 million euros (270,000 million) provided with the International Monetary Fund expires February 28 and, if renewed, could leave Athens unable to meet their financial needs and foreclose its banks ECB liquidity support.

“We (the ECB) We have our own laws and act according to that (…) The extension of the Greek program will expire at the end of February; must be some kind of solution, or we can keep giving loans, “Liikanen, who is also governor of the Central Bank of Finland, the public broadcaster YLE said.

” I do not think anyone can hide from the realities in the economy, “he added

As for the possibility of a Greek debt discount, Liikanen said.” There has been a significant restructuring of debt with private investors. The ECB can not directly fund a state, which is what it would mean in this case. “