Don't miss

Replay


LATEST SHOWS

MEDIAWATCH

The hunter hunted

Read more

MEDIAWATCH

The hunter hunted

Read more

THE DEBATE

The Allure of Trade: French Foreign Minister seeking closer ties with Tehran part 2

Read more

THE DEBATE

The Allure of Trade: French Foreign Minister seeking closer ties with Tehran part 1

Read more

FOCUS

Colombian community takes on drug gangs

Read more

THE INTERVIEW

Tony Parker backs France to retain European title

Read more

ENCORE!

The films of summer 2015

Read more

MIDDLE EAST MATTERS

Israel mulls force-feeding Palestinian prisoners on hunger strike

Read more

EYE ON AFRICA

Obama addresses African Union

Read more

Europe

Euro zone ministers divided over Greek debt crisis

Video by FRANCE 24

Text by News Wires

Latest update : 2011-05-17

Discussions amongst euro zone finance ministers Monday focused on Greece's deepening debt crisis, with disagreements emerging over whether to change the floundering economy’s debt repayment terms.

AP - Top eurozone officials disagreed over whether to consider changing the debt repayment terms for Greek bonds, a move some experts say is inevitable and others deem too risky for Europe’s broader financial stability.

Jean-Claude Juncker, chairman of the group of 17 eurozone finance ministers, said Monday he “wouldn’t exclude” a voluntary delay to repayments on Greek government debt that would give the struggling country more time to fix its economy and regain market trust.
 
But he was immediately contradicted by France’s Finance Minister Christine Lagarde who ruled the step out, a sign that European officials are still wrestling over what to do about Greece’s debt crisis.
 
Euro zone gets down to business despite Strauss-Kahn arrest
Juncker said the group’s adamant stance against restructuring - or giving creditors less than full value of their bond holding - did not extend to what he and others have called “reprofiling,” or a voluntary offer from bondholders to accept repayment over a longer period.
 
However, he warned that Greece wasn’t ready yet to reprofile its debt, which would only come into play after Greece makes more efforts to raise money from privatization and budget cutting.
 
Juncker made his remarks as the group signed off on a 78 billion euros ($110 billion) package of rescue loans from the EU and the International Monetary Fund and wrestled with what further to do with Greece, which has received an 82 billion euros bailout but appears unable to get back on its feet financially without more help.
 
The whole topic of altering the repayment terms of Greek bonds is an explosive one, with officials from the European Central Bank warning a restructuring - making creditors take less than 100 cents on the euro - could spread the debt crisis beyond Greece.
 
Juncker said Monday that all political parties in Greece needed to endorse further austerity and reform measures as well as further privatization of national assets.

 

Date created : 2011-05-17

  • PORTUGAL

    EU and IMF seal €78 billion bailout deal for Portugal

    Read more

  • ECONOMY

    Europe tackles Portugal bailout despite IMF chief arrest

    Read more

  • GREECE

    Debt-hit Greece denies reports of renewed bailout talks

    Read more

COMMENT(S)