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Greece is considering a moratorium on debt payments

11 February 2014 / 14:02:25  GRReporter
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Greece is considering a moratorium on debt payments as is clear from a written reply by the Public Debt Management Agency to  Independent Greeks party deputy Maria Kolia Tsaroucha, cited by Naftemporiki newspaper. The same document makes it clear that the Agency doubts the sustainability of the Greek debt in its current form. Maria Kolia Tsaroucha is Vice-President of the Greek Parliament.
    Its representatives state that "the recording of the primary surplus will be immediately followed by a new round of negotiations on the debt restructuring in order to make it serviceable." Over the weekend, it became clear that the president of Eurostat doubts the Greek primary budget surplus and wants to wait until April, when the European statistical service will announce the official data.
    The Public Debt Management Agency suggests that Greece should pursue the following tactic: "It should provide the necessary time for covering all outstanding debt payments by the primary budget surplus in order to convince international investors that their investments are guaranteed, thus driving them to return to Greece and bring the required liquidity through direct or indirect lending to the Greek state."
    The Public Debt Management Agency also suggests that Greece should return to international markets of government securities, maintain relations of reciprocity and solidarity with its partners in the euro zone, understanding the position of the European taxpayers and restore the reputation of Greece, as it is solvent and trustworthy.
    As for the numbers, according to the Agency, Greece’s public debt was 365 billion euro before the PSI whereas it amounts to 321 billion euro at present and its interest rate is lower. The cost of paying the debt interest in 2014 alone amounts to 6 billion euro.

The document bears the signature of head of the Public Debt Management Agency Stelios Papadopoulos.

Tags: Moratorium on debt paymentsPublic Debt Management AgencyMaria Kolia TsarouchaIndependent GreeksPSI
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