Open

Coming up

Don't miss

Replay


LATEST SHOWS

MEDIAWATCH

No strategy and a beige suit

Read more

THE WORLD THIS WEEK

The World This Week - 29 August 2014 (part 2)

Read more

THE WORLD THIS WEEK

The World This Week - 29 August 2014

Read more

ENCORE!

Alain Choquette: A Hilarious Magician in Paris

Read more

FOCUS

France welcomes Iraqi Christian refugees

Read more

FRANCE IN FOCUS

Emmanuel Macron: A new economy minister with a pro-business agenda

Read more

THE OBSERVERS

More of this year's best Observers stories

Read more

#TECH 24

Changing the world, one video game at a time

Read more

IN THE PAPERS

Socialist Party summer conference kicks off in explosive atmosphere

Read more

  • Exclusive: Fabius warns of further sanctions against Russia

    Read more

  • British killer escapes from French psychiatric hospital

    Read more

  • First case of Ebola confirmed in Senegal

    Read more

  • Police hunt for British boy with brain tumour taken to France

    Read more

  • Chelsea’s Torres set for AC Milan switch

    Read more

  • Ukraine to relaunch NATO membership bid

    Read more

  • France shines in IMF list of world’s promising economists

    Read more

  • Mapping Ukraine: Canada and Russia in ‘tweet for tat’ row

    Read more

  • Obama has 'no strategy yet' on potential Syria strikes

    Read more

  • Netflix to woo French with ‘House of Cards’ set in Marseille

    Read more

  • French businesses ‘hoping for a new Thatcher’

    Read more

  • Syrian refugees surpass 3 million, UN says

    Read more

  • West backs Ukrainian claims of Russian incursion

    Read more

  • Libyan PM resigns as Islamists set up rival administration

    Read more

  • UN says 43 peacekeepers captured in Golan Heights

    Read more

  • The deleted tweets of Manuel Valls

    Read more

  • Peru seizes record 6.5 tonnes of Europe-bound cocaine

    Read more

  • Pakistan army to mediate between PM, protesters

    Read more

  • In pictures: Billions of locusts invade Madagascan capital

    Read more

  • Brad Pitt and Angelina Jolie say ‘I do’ in France

    Read more

Europe

Greek Central Bank rules out debt restructuring

Video by Kethevane GORJESTANI

Text by News Wires

Latest update : 2011-04-18

Bank of Greece Governor George Provopoulos (pictured right) said on Monday that debt restructuring is "neither necessary nor desirable" as it could limit government and business access to international credit markets.

AFP - A Greek debt restructuring is "neither necessary nor desirable," the head of the central bank said Monday as he called for faster structural reforms to keep up with the country's obligations.

"Such an option is neither necessary nor desirable," Bank of Greece governor George Provopoulos said in his annual report on the Greek economy.

"It is not necessary because we can meet our goals if we apply policies correctly. It is not desirable because it would have disastrous consequences on the access of the government and of businesses to international credit markets," Provopoulos said.

The central banker, a member of the board of the European Central Bank, said the recession-hit Greek economy was "on the edge" as structural reforms were still slow in relation to the country's rapidly-growing debt.

Greece's debt has exploded to 340 billion euros ($490 billion) and speculation is rife that the recession-hit eurozone member will seek a way to ease its repayments under a restructuring before long.

But the Socialist government has repeatedly insisted that such a move would damage the country's efforts to repair investor confidence which has been strained ever since a scare over the accuracy of its fiscal statistics in 2009.

A former Greek prime minister who oversaw the country's eurozone accession a decade ago added his voice Sunday to calls to roll over Athens' crushing debt.

"A well-prepared restructuring will essentially improve our position," Costas Simitis said in an interview with To Vima weekly.

"The longer it delays, the greater the debt that cannot be restructured," the 74-year-old law professor argued.

Greece has already secured a repayment extension on its 110-billion-euro ($159-billion) bailout loan secured from the EU and the International Monetary Fund last year.

To help out, Athens' eurozone partners last month agreed to cut the cost for its EU-IMF bailout package by a full percentage point and extend its maturity to 7-1/2 years from three years.

But according to a number of reports, Greek Finance Minister George Papaconstantinou last week broached the idea of extending the repayment period on the country's entire debt at a Eurogroup finance ministers meeting in Hungary.

"We are not discussing anything," the minister insisted this weekend.

"We are not discussing something regarding (Greek debt to) the private sector," he told reporters on the sidelines of the IMF and World Bank annual spring meetings in Washington.

Greece's economy is caught in a tailspin as it labours to enforce a draconian austerity programme mandated by the EU and IMF in return for last year's bailout.

Provopoulos forecast Monday that the recession will drag on this year, with output falling at least three percent, "without excluding a somewhat greater drop," he noted.

Unemployment -- which has soared to levels unseen in a decade -- will exceed 15 percent, the central banker said. Inflation will fall compared to last year but will still be close to 3.25 percent, Provopoulos said.
 

Date created : 2011-04-18

  • GREECE

    European Commission rules out Greek debt restructuring

    Read more

  • GREECE

    Greece reacts with fury as Moody’s slashes its credit rating again

    Read more

  • GREECE

    Protests spark violent clashes in Greece

    Read more

COMMENT(S)