Merkel Does Not Rule Out Future Greek Debt ‘Haircut’

by Blogburger on December 2, 2012

German Chancellor Angela Merkel said on Sunday that Greece’s creditors may look at writing down more of its debt but not before the current bailout program has run its course. Last Tuesday euro zone finance ministers and the IMFÂ approved a package of measures including interest rate reductions and an extension of repayment periods aimed at cutting Greece’s public debt to 124 percent of national output by 2020. Germany insists a writedown of Greek debt held by euro zone governments would be illegal, though Finance Minister Wolfgang Schaeuble has also recently signaled that some kind of debt ‘haircut’ for official lenders might be needed eventually. “If Greece one day handles its revenues…

WN.com – International English News

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