Greece could get a time extension for paying back loans to creditors if it guarantees that it’s sticking to the agreed reform and cost-cutting targets, Austrian Chancellor Werner Faymann told the Sunday edition of Austrian newspaper Oesterreich in an interview, according to a pre-release Saturday.
“I see a good chance that Greece is sticking to its agreements with the EU, but get more time for paying back its debt,” Mr. Faymann said, according to the newspaper.
“If that’s guaranteed, I’m in favor of an extension of the debt repayment. That could be two to three years–it’s up to the experts to decide that,” Mr. Faymann said, adding that the crisis and unemployment in Greece have reached a magnitude that won’t enable the country to pay back its debt without getting more time to do so.
A breakup of the euro zone would be extremely dangerous for Austria, Mr. Faymann said, pointing to such dangers as collapsing exports, rising unemployment and lower wages.
(source: Dow Jones)