The president of Germany’s Bundesbank says there can be a three-year extension on the maturities of a country’s bonds if it requests a European Stability Mechanism bailout program. But the president says that it’s too late for Greece to benefit.
“One proposal of the Bundesbank envisages, for example, an automatic three-year extension of the maturities on all the bonds of a country as soon as it has applied for an ESM [European Stability Mechanism] program. That would drastically reduce the financing needs of a possible program. Financial aid would then only be needed to give more time for the fiscal adjustment process, thereby making it easier, but not to clear old debts. I would say it is the lesson we can draw from the experience with Greece. For Greece it is too late for that,” said Jens Weidmann, the president of Germany’s Bundesbank.
(source: cntv)
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