Klaus Regling: The greek debt is viable, it does not need a ‘haircut’

Klaus Regling: The greek debt is viable, it does not need a ‘haircut’

 

By Spiros Sideris – Athens

Convinced that the greek debt is viable and that there is no need for a “haircut” appeared yesterday the head of the EFSF ESM Klaus Regling, speaking at book presentation to the European Parliament in Brussels.

Klaus Regling officially commented on the sustainability of the debt and made it clear that the current decisions of the Eurogroup have brought it to a satisfactory level, and all that remains now is for the country to continue its reform efforts, without backtracking, to reap the fruits of reforms in a few years.

Klaus Regling reiterated that the country is the champion of reforms among the OECD countries.

“Greece does not need a debt relief. I do not agree that the greek debt is not sustainable. Settlement we have done with the EFSF for the greek debt robs the meaning from the classical interpretation of the debt to GDP ratio. Greece benefits from a ten-year moratorium on interest payments and maturing loans for over 10 years. Therefore, it has the time and space needed to recover.

Greece does not have the risk of a pending debt for at least a decade. It benefits from cheap loans from the EFSF and saves more than 8.5 billion every year in its budget. The EU solidarity in Greece is personified in the lending by the EFSF”.