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Finmin: Greece to return to debt market by end of year

Δημοσίευση 29 Ιανουαρίου 2011, 12:05 / Ανανεώθηκε 27 Ιουνίου 2013, 14:55
Finmin: Greece to return to debt market by end of year
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Finance Minister George Papaconstantinou on Friday said Greece could return to the debt market by the end of this year and reiterated that Athens would not restructure its debt to private creditors.

Finance Minister George Papaconstantinou on Friday said Greece could return to the debt market by the end of this year and reiterated that Athens would not restructure its debt to private creditors.

Greece became the first euro zone country to receive an EU/IMF bailout last May, receiving 110 billion euros in loans after it was shut out of capital markets due to massive debts.

Separately, Greek Prime Minister George Papandreou said European Union governments were considering the possibility of allowing EU financial institutions to recapitalise European banks that need bolstering.Papandreou was asked whether a collective solution at an EU level to recapitalise banks that needed funds along the lines of the U.S. TARP programme was under consideration.

"These are issues which are being seriously discussed now," he replied. "Who is going to do this if it is necessary? Will it be the EFSF? Will it be the ECB (European Central Bank)? These are issues that are on the table."
His finance minister stuck to an official forecast of a 3 percent contraction in Greek GDP this year after a 4 percent fall in 2010, but added:

"Let's see if we can surprise the market."
Athens is committed under its austerity programme to cut its budget gap to below the EU limit of 3 percent of GDP in 2014.

Papaconstantinou said he expected the euro zone and the IMF to agree to stretch out the repayment period for rescue loans and reduce the interest rate to help make the debt sustainable.

Greece's public debt stands at 145 percent of GDP and is projected to peak at 158 percent in 2013, according to EU and IMF forecasts, a level which many say is unsustainable.