According to a confidential paper
prepared by the European Stability Mechanism, obtained by
Reuters, Greece will not need any debt relief from euro zone governments
if it keeps its primary surplus above 3 percent of GDP for 20 years.
Key highlights (via Reuters):
https://www.fxstreet.com/news/ecm-greece-wont-need-debt-relief-if-it-keeps-its-surplus-above-3-gdp-for-20-years-reuters-201705241326
Key highlights (via Reuters):
- Greece would have to keep primary surplus of around 2 pct/GDP until mid-2030s if maximum debt relief offered
- Maximum debt relief under consideration is extension of avg weighted maturities by 17.5 yrs from current 32.5 yrs
- Maximum debt relief would also cap interest on loans at 1 pct until 2050, limit loan repayments at 0.4 pct of greek GDP
- Maximum debt relief would also entail euro zone buying back some 13 bln euros worth of IMF loans to Greece
- Under IMF assumptions of future Greek growth, primary surplus, even maximum euro zone debt relief offer is not enough -paper
https://www.fxstreet.com/news/ecm-greece-wont-need-debt-relief-if-it-keeps-its-surplus-above-3-gdp-for-20-years-reuters-201705241326
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