EU lenders keep working on a new plan for Greece’s debt relief

Currently, European lenders of Greece have been working out a substantial remedy to offer the struggling European country long-awaited debt relief on the condition that the EU member adopts extra reforms by 2022.

As for the country’s 316-billion-euro debt, EU lenders would firstly give permission for lower interest rates, not to mention longer maturities. A bit later, there would be negotiations as for linking debt payments to obvious economic growth provided Greece took measures to be agreed with lenders by 2022.  

Officials of the European commission and other European organizations, including the European Central Bank, to say nothing of the euro zone's rescue fund have already discussed the plan mentioned above.     

The lenders have talked in public about granting debt relief on the condition all the necessary reforms are completed.

Regarding this report, Alexander Stubb, Finnish Finance Minister pointed out that at this moment EU lenders actually do not pay much attention to debt relief. Instead, they focus on executing the third interim review of the program.   

By the way, on Thursday, the chairman of the euro zone finance ministers group, Jeroen Dijsselbloem told that EU lenders were mainly interested in the overall quality of the reforms the EU member had promised in exchange for the required bailout.


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