EU not ruling out new Greek debt measures

EU not ruling out new Greek debt measures
# 23 April 2011 18:21 (UTC +04:00)
Baku-APA. The European Union has not ruled out new measures to ease Greece’s intractable debt problem, the European Commission’s chief representative in Athens said in an interview published on Saturday, APA reports quoting news.yahoo.com website.
"The analysis of the Greek debt will be made by the EU, the International Monetary Fund and the European Central Bank at the next review of the recovery plan in May," Panos Karvounis told the daily To Vima.
"According to the conclusions of that review, the analysis could lead to an adaptation of the measures foreseen in the financial recovery plan," he added.
A representative of the participants in the Greek bailout will be in Athens early next month to review the government’s plans with regard to the payment of the fifth installment of the 110-billion-euro three-year loan granted by the EU and IMF.
The plans include wholesale privatisations and sell-offs of state assets over the period 2012-15, but analysts fear that it will not be enough, prompting feverish speculation that a debt restructuring is in the offing.
Greece has reacted angrily to the persistent rumours that it is about to seek easier repayment terms from its creditors on a soaring 340 billion euro ($485 billion) debt that has put markets on watch.
The rate of return on Greek benchmark 10-year government bonds has jumped above 14 percent for the first time since the eurozone was created, reflecting deep-seated doubt that Athens can stabilise its finances.
The Greek finance minister insisted on Wednesday that the debt is "viable" and that Athens still intends to raise money on markets early next year despite currently exorbitant rates.
Greece has already secured one repayment extension on the EU-IMF loan, and Karvounis warned, "The implementation of the economic recovery plan dictated by the EU and IMF and accepted by the country in 2010 is the condition for Greece to return to the markets in 2012."
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