Thursday , August 11 2022

EFSF 's "green light" from the Greek economy to facilitate medium – term debt



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According to the Fund's statement, the Board of the European Financial Stability Fund (EFSF) has approved the package of measures to reduce medium-term debt to Greece.

The news says that measures taken by Eurogroup finance ministers on Eurogroup on June 22, 2018. These measures relate to:

(a) the mechanism for gradual abolishment of interest rates, related to loans of the second Greek program since 2018,

(b) EFSF loans amounted to USD 96.4 bln. further extension of the grace period for euro and depreciation for up to 10 years; and (c) lengthening the average maturity of the aforementioned loans up to 10 years.

"We estimate that a mid-term set of measures agreed by ministers last season would reduce Greece's debt to GDP by 30 percent by 2060. We also hope to reduce the overall funding requirement of Greece to the European Stability Mechanism and EFSF Head Klaus Regglingen.

He will encourage Greece to continue the implementation of agreed upon reforms in the memorandum to reduce debt repayment, to eliminate the interest margins by 2022 "from major reforms to the Program and compliance with agreed measures and political commitments during the post-mortem period in Greece."

Source: RES-EAP

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