Greece could receive additional aid without fresh bailout terms or haircut: Greek FinMin

Greece could receive additional financial aid from the European Union and the International Monetary Fund without fresh bailout conditions or a new haircut attached to it, according to Greek Finance Minister Yannis Stournaras.


“If Greece needs further support that will be no more than 10 billion euros (13.4 billion U.S. dollars). It will be a support package without new conditions, since targets have been set until 2016, as well as our commitments,” Stournaras said in an interview with Greek Sunday newspaper “Proto Thema”.

Acknowledging that in the face of a possible funding gap Greece is still is no position to return to international markets in the near future, he also ruled out the prospect of a new debt restructuring, in such a case.

“There is not a possibility,” he said, referring to last year’s Euro group decision that paved the way to an extension of the debt repayment period for Greece and a reduction of interest rates for the rescue loans granted to the debt-laden country since it was shut out of markets in 2010 under certain conditions.

The top one is the achievement of primary plus. Stournaras reiterated confidence that the goal will be achieved in 2014, the same year the current second bailout program expires.

Since 2010 Greece is kept afloat with a total 240 billion euro financing under two bailout programs in return for a tough austerity and reform plan which has been hit by delays.

Despite the crucial international aid to avoid default and a supplementary write-down of its debt load by some 100 billion euros last year, at the end of the first half of 2013 Greece still had a 321 billion euro debt, according to the latest official data, which is considered unsustainable by some analysts.

So far in 2013, despite three-year austerity and the reform drive, the debt increased by 16 billion euros from 305 billion euros at the end of 2012.

As a result, talks over a third bailout or a second haircut have resurfaced recently. And while there are increasing statements of European officials implying that additional support could be given to Athens, leaders such as German Chancellor Angela Merkel have warned that a new haircut would harm euro zone’s stability. (1 euro = 1.34 U.S. dollars)

Source: Xinhuanet