Greece lays out plans for debt relief from eurozone

The Greek government sees it as the perfect time to launch the discussion on how to reduce the country’s public debt mountain and is poised to put forward proposals of its own.

Finance Minister Yannis Stournaras is expected to argue that Greece lived up to its commitment to push for a primary surplus from 2013, a year earlier than initially planned, and that it is now the turn of its single currency partners to keep to a pledge that they made at the November 2012 Eurogroup to take further steps to make Greek debt sustainable.

The first post-PSI measures easing the country’s debt servicing were decided at that Eurogroup and included:

a)     Lowering by 100 basis points (bps) the interest rate on the first programme’s bilateral loans (the so-called Greek Loan Facility – GLF) of 52.9 billion euros.

b)    Extending the maturity of bilateral and European Financial Stability Fund (EFSF) loans by 15 years.

c)     Deferral of interest payments on EFSF loans by 10 years.

As a result, the cost of GLF was reduced to Euribor plus 50 bps and currently stands at 0.84 percent.

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