Once again European Finance Ministers ruled out a debt restructuring through a haircut of Greek government bonds, but admitted for the first time that a
reprofiling of Greek debt for the next two years is possible, forasmuch as all measures provided by the Memorandum of Understanding fail. However, European Central Bank still rejects any proposal regarding a debt restructuring, warning about uncontrollable consequences.
The conclusion that comes from Eurogroup’s meeting is that the finance ministers can not yet decide on the fate of Greek debt, as the diversity of views among member states remains the key feature.
According to unconfirmed Capital.gr information, despite the endless debate about Greece, the ministers weren’t updated by troika, whose representatives travelled to Brussels for this very reason. They agreed instead to postpone the issue for June with the excuse that the troika’s review is not yet completed and therefore there is no efficient data for a decision.
Some ministers raised the “German” proposal of a privatization committee under troika’s supervision, but they didn’t insist because of objections.
However, the proposal is expected to reopen before the European Summit in June. As for the fifth trance of the aid loan, the European Commission has cleared that if the troika’s assessment is negative, then the European Council will be called to make a political decision on whether the instalment will be released and how.
capital
