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Eurozone FinMins still reportedly undecided over length of loan maturity deferments for Greece

By N. Bellos
[email protected]

Ongoing negotiations at the Eurogroup venue are reportedly revolving around the thorny issue of extending maturities for EFSF loans extended to Greece as part of the second memorandum program.

Specifically, the number of years by which maturities will be extended is cited as “stumbling block”, with Eurozone finance ministers sill not near a unanimous decision. Discussions could drag on into Thursday evening in Luxembourg, where the ministers are meeting. The Eurogroup meeting had been set to conclude before 18.30 local time.

Besides the length of loan maturity extensions, Eurozone finance ministers are also considering the sum of the last loan tranche to be disbursed to Greece – as part of the current and last bailout program – as well as a repayment scheme for covering loans disbursed by the IMF.  

Nevertheless, the target is still for an agreement on Thursday.

Extending maturities of loans disbursed during the second bailout is deemed as a primary ingredient in any debt relief package for Greece, given that Greece received 95 billion euros as part of the second bailout.

According to Eurogroup insiders, Germany is being pressured by the Commission and the French side to consent to an extension of maturities of up to 15 years, something, however, that Berlin sternly opposes.