EU Official: Greece Needs New Agreement with Creditors on Debt Relief



A senior EU official has warned that additional debt relief for Greece will require a new agreement with the creditors.

In an interview published by Kathimerini on Sunday, Thomas Wieser , outgoing president of the Eurogroup Working Group (EWG) said that although the discussion on the relationship between Greece and the creditors after the end of the program in August 2018 is ongoing, much will depend on a possible debt relief agreement.

“If there is a further debt relief after the end of the program, then it is sensible to reach a further agreement,” he is quoted as saying.

Wieser is also reluctant to endorse the Greek government’s pledge of a clean exit to the markets as of August 2018.

He notes that other countries that have signed bailout agreements have a different relationship with the partners.

According to EU rules already applicable to Ireland, Spain, Portugal and Cyprus and soon to be applied in Greece, enhanced supervision by the Eurozone authorities is required until 75% of the loans are repaid.

Analysts point out that, according to current projections, in the case of Greece an enhanced supervision will be in place until 2060.

In the same interview, Wieser says that the economic recovery of Greece was hindered by lack of foreign investment.

“I think it’s only very recently that international and national investors trust that Greece is finally approaching the time where it can stand on its own feet again financially and that it is not a huge risk to invest in its economy,” he was quoted as saying.

He claimed that a major barrier for foreign investment was the justice system which is extremely slow.