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No debt relief for Greece, says Germany’s deputy minister

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Staff Writer | February 27, 2017
Greece must not be granted a “bail in” that would involve creditors taking a loss on their loans, Germany’s deputy finance minister said in an interview.
Jens Spahn
Europe   Inspectors are due to return to Athens
“There must not be a bail-in,” Jens Spahn told German broadcaster Deutschlandfunk, according to a written transcript of the interview.

“We think it is very, very likely that we will come to an agreement with the International Monetary Fund that does not require a haircut,” he said, referring to losses that Greece’s creditors would have to take if debt was written off.

The IMF has called for Greece to be granted substantial debt relief, but this is opposed by Germany, which makes the largest contribution to the budget of the European Stability Mechanism (ESM), the euro zone’s bailout fund.

Greece and its creditors agreed on Feb. 20 to further reforms by Athens to ease a logjam in talks with creditors that has held up additional funding for the troubled eurozone country.

Inspectors from the European Commission, the ESM, the IMF and the European Central Bank are due to return to Athens this week.


 

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