Euro zone bailout chief backs Greek plan for early IMF repayment in October By Reuters

Euro zone bailout chief backs Greek plan for early IMF repayment in October By Reuters

HELSINKI (Reuters) – The head of the euro zone’s bailout fund, Klaus Regling, said on Friday he supported a Greek plan for the early repayment of part of the expensive loans the country got from the International Monetary Fund during the sovereign debt crisis.
At an informal meeting of euro zone finance ministers in Helsinki on Friday, Greek Finance Minister Christos Staikouras presented his plan to repay earlier about 3 billion euros of IMF loans, which carry a punitively high interest rate of 5.1%.
The partial repayment would reduce the current total IMF loans for Greece, which now stands at 9 billion euros.
“I welcome the intention to proceed with the early repayment of the expensive part of the IMF loans,” Regling said. “We will do the necessary preparations.
“All that can happen together with the assessment of the (Greek) budget for 2019 and 2020, when the (bailout fund) mission (to Greece) starts next month,” he said.
The euro zone bailout fund’s approval is necessary because under the lending deal Athens has with the euro zone, if it wants to repay early any creditors it has to offer proportionately the same deal to the euro zone as well.The euro zone is Greece’s biggest creditor. Regling said the early repayment of the expensive IMF loans was good for the euro zone because it made Greek finances more sustainable and in this way made a repayment to the euro zone more likely.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.


Source link