German Finance Minister Wolfgang Schaeuble stood by Berlin’s position of not discussing medium-term debt relief measures for Greece before the current bailout program ends, speaking hours before Monday’s Eurogroup meeting in Brussels.
Schaeuble has repeatedly maintained the same position over recent period, despite the stepped up talks, deliberations and posturing over a compromise between the IMF and European creditors to deal with the Greek debt.
In again pointing to the period after August 2018, Schaeuble referred to an extension of maturities on Greek bonds held by institutional creditors and possible a cut in interest rates.
In a nutshell, the IMF demands debt relief in order to ensure that Greece’s debt load is sustainable. European creditors, especially Germany, want high fiscal targets and GDP growth by Greece in order to reduce their exposure and to prevent any future Greek economic meltdown.
Turning to today’s Eurogroup, the German FinMin merely expressed a hope that a conclusion of the second review will finally be achieved on Monday.
