ATHENS: Incoming European Commission President Jean-Claude Juncker played down yesterday the option of an outright writing off of part of the eurozone loans to Greece to make the country’s debt more manageable.
But in his first visit since being elected to lead the Commission, he praised Greece as an example for debt-stricken nations like Argentina to follow, a show of support for the country where the eurozone debt crisis began.
Bailed out twice by the European Union and International Monetary Fund, Greece has sharply reversed course since nearly crashing out of the euro in 2012. But it is still expected to require further debt relief, talks on which are expected to start later this year. Juncker’s latest comments appeared in line with indications from Greek and EU officials that Athens will likely get lower interest rates and an extension of loan maturities rather than outright write-off of debt as part of any new debt relief.
Asked whether Greek debt could be sustainable without a so-called “haircut” or writeoff, Juncker declined to go into specifics but said: “When it comes to Greece, the question you’re mentioning is not part of my meditation.”
Juncker has made occasional stops in Greece when he was head of the powerful Eurogroup of eurozone finance ministers, including a 2012 visit when he warned Athens was staring at its last chance to avoid bankruptcy. But recent visits have largely focused on praising Greece and he has portrayed himself as an advocate of the country in the corridors of power in Europe, saying he “fought like a lion” against talk of kicking Greece out of the euro.
Reuters
