It was ESM Managing Director Klaus Regling’s turn on Saturday to repeat European creditors’ constant message to Athens, namely: keep implementing agreed to reforms and debt relief is on the table.
The comments by the influential head of the Euro zone’s emergency financial assistance fund correspond with French Finance and Economy Minister Bruno Le Maire’s statements to “N” on the same day.
Regling said the Greek government is proceeding down the correct path, but should stick to the reforms enshrined in the third memorandum bailout. If this effort continues successfully, Regling said in a Saturday address, then Greece is will be able to service its borrowing needs from sovereign capital markets.
The ongoing bailout officially ends in August 2018, with all creditors – and Greece’s political leadership – loath to even consider the prospect of a fourth memorandum.
He pointed to last July’s first foray into the markets by a Greek government in three years as proof, as he said, that investors have started to regain their confidence in the still bailout-dependent country.
“If the government continues its reforms, then the other Euro zone member states are ready to offer further relief for (Greece’s) public debt,” he said.
