European Commission VP and Commissioner for the Euro and Social Dialogue Valdis Dombrovskis on Tuesday commented directly on the ongoing speculation regarding Greek debt relief, as a June 21 Eurogroup meeting appears prominently as the crucial date and venue for relevant decisions.
In comments carried by Germany’s Handelsblatt, the Latvian Commissioner said consideration was being given on how to link a debt relief proposal, known as the “French model”, which pegs the level of debt repayment with annual economic growth, to Greece’s obligations to meet fiscal targets.
Dombrovskis said proposals being currently discussed deal with bailout loans extended by the European Financial Stability Facility (EFSF) to Greece, to the tune of 130.9 billion euros, essentially money disbursed to the country as part of the second memorandum program.
He added that the 45.9 billion euros provided to Greece under the third bailout – the one signed by the Tsipras government in July 2015 – already feature low interest rates and extended maturity dates.
