Greece must continue to implement the terms that it has previously agreed to, along with reforms, even after the third bailout ends in August 2018, European Stability Mechanism (ESM) Managing Director Klaus Regling reiterated over the weekend.
The influential ESM chief spoke from the third Delphi economic forum, which has been held next to the eponymous archaeological site in south-central Greece for almost the past week.
He noted that the country’s fiscal adjustment “journey” has not come to an end, while repeating that medium debt relief measures will be linked to Greek economic growth, measures that will benefit both sides, as he said.
He merely reiterated that such debt relief measures will include an extension of maturities for loans already extended to the country by the ESM, which correspond to more than 50 percent of Greece’s external debt at present. Another measure he cited is a redistribution of profits from Greek state bonds held by creditors.
The framework for probable medium-term debt relief measures has more-or-less been well defined by creditors’ representatives over the past year and a half, it’s long-term measures to reduce the debt load as far off as the middle of this century that remains unclear.
Regling, on his part, said only a declaration of intent is forthcoming at this phase, in order to boost markets’ trust vis-a-vis Greece.
Based on current figures, the ESM chief said, Greece will pay off its debts to the ESM in 41 years (2059).
