Rescue Fund Chief Warns Greece to Stick to Reforms



The Greek government should remain focused on implementing the prescribed reforms to regain investors’ trust and return successfully to the markets, the head of the European Stability Mechanism, Klaus Regling, warned on Tuesday.

Speaking at a dinner for the 90th anniversary of the Hellenic Bank Association he stressed that Greece’s access to the markets “remains fragile”.

He added that the recent market turbulence due to external factors has had a negative impact on Greek spreads.

“Greece is on the brink of becoming the next successful example of this euro-area approach, as long as it sticks to the reform policies during the remainder of the program, and (afterwards),” Regling was quoted as saying by Reuters.

With Greece expecting official creditors to come up with medium-term debt relief to render its debt load sustainable, Regling said he was confident an agreement would be reached at next week’s meeting of eurozone finance ministers.

“(But) as Greece requires substantially more debt relief than any other country in the euro area, the post-program surveillance will be tighter and more comprehensive,” he added.