Sester: Remitting Greece's debt not an option (1)
The finance ministers of the European Union’s member states have begun negotiating the possible conditions of a third financial aid package for Greece. The International Monetary Fund's suggestion to remit part of Greece’s debt was not an option, Finance Minister Sven Sester (IRL) said.
Sester said that a reduction of Greece’s debt that way wasn’t possible, and that a large part of the EU’s member states shared this opinion, as the funds involved were mainly taxpayers’ money.
The details that could be negotiated were the length of loan agreements as well as interest, Sester said. “If we look at serving the debt, we see that even though the loan is large, the interest isn’t very high, and the pay-back period is long, which is why the payments aren’t very high,” Sester explained.
The minister went on to say that what was needed was a clear explanation in writing what Greece intended to do until 2018, and that the finance ministers needed to look back at the previous six months to evaluate what Greece had been doing and what was achieved.
Sester said that any proposal made by the International Monetary Fund (IMF) would be discussed, and that any decisions made in the future would also be brought before the Riigikogu. “This is only normal and logical in a parliamentary state,” Sester stressed.