Monday, May 25, 2015

Greece: Klaus Regling warns against sovereign default – SPIEGEL ONLINE

The head of the European rescue fund ESM, Klaus Regling, appealed to the government in Athens: Greece must as soon as possible an agreement with its lenders on a binding reform list. Only then will the country get new money borrowed, Regling made clear in an interview with the “Bild” newspaper.

“Time is running out,” Regling said. Therefore being worked ceaselessly to reach an agreement, because otherwise the consequences would be severe. “Then face a state bankruptcy,” said the German economist.

“That would have an impact on other creditors like us,” Regling said. “On the other hand assigns the bailout loans only if reforms are implemented. The same is true now, the only way the Greek economy healthy.”

Regling stressed that the rescue package is quite capable, Greece more billions disburse aid. However, Athens had to reach an agreement with the creditors on a mandatory reform list

From Greece were last heard contradictory statements. The government spokesman assured that the country would do everything possible to repay its debts to the IMF. Efforts were a viable solution with the EU Commission, the European Central Bank and the IMF, and will reach an agreement soon. Sticking points in the talks are VAT, pensions, labor market reforms and the goals of the so-called primary surplus, are eliminated in the interest payments.

In contrast, Interior Minister Nikos Voutsis had cast doubt on whether Greece an early June due repayment of 300 million Euro will be able to afford.


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