Debt relief smooth Greek return to markets

2 Jul 2018 01:41 PM

The debt relief measures agreed with Greece's official creditors to help make their debt burden sustainable to help the country return to market financing, the central bank said in a monetary policy report.

Central Bank warned that in the long-term debt sustainability would hinge on maintaining fiscal and reforms efforts as well as further debt relief by euro area creditors.

Last week, Euro zone finance ministers extended maturities and postponed interest payments for 96 billion euros of Greek debt, equivalent to one-third of the country's total debt. Greece has the highest debt-to-GDP ratio in the euro zone - nearly 180% of its national output.

Greece is expected to exit from its three-year rescue program worth up to 86 billion euros in August, this is the third bailout since the crisis in 2010.

The central bank added in its report that the sustainable return of the Greek state to the international sovereign bond markets will be the ultimate and definitive proof that the economy has overcome the crisis, and any other outcome would undermine growth prospects and give rise to serious problems.

Tags:

Prices may be delayed by 5 seconds. Prices above are subject to our website terms and conditions. Prices are indicative only