German Chancellor Angela Merkel said she has not ruled out a so-called “haircut”, or write-down, on Greek debt in the next few years, in an interview with a Sunday newspaper, marking an apparent softening in position.
After being vehemently opposed to accepting a “haircut,” Merkel told Bild am Sonntag that it could be considered from 2014 if Greece’s financial situation improves, according to a pre-released article.
“If Greece one day again manages with its revenue without getting new debt, then we must look at and assess the situation. That is not the case before 2014/15 if everything goes according to plan,” she told the paper.
Opposition politicians have accused Merkel of playing down the need for a write-down of Greek debt holdings by public institutions such as other eurozone governments and the European Central Bank, because of federal elections expected to take place on September 22.
In the Bild interview, Merkel contested that she had refused a “haircut” due to the looming elections.
“The current aid programme for Greece runs until 2014, for the achievement of certain budgetary goals we have given the Greeks two years more time until 2016,” she said.
Many in Germany consider a write-down of Greek debt holdings inevitable.
(source: AFP)
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