Eurozone ministers discuss cutting interest on Greek loans
Reuters headlines, citing ‘EU official’
- Ministers pausing from meeting to prepare new proposals
- Discussing cutting interest on bilateral loans to 25 bps from 150 bps
- Considering 10-year moratorium on interest payments from EFSF loan, would save 44 billion euros
- Aim to bring debt-to-gdp to 120% in 2020
- No decision yet on any of the topics
In interest concession is a huge, considering the countries who lent them the money have to pay interest on their debt.
At the end of the day, this has to be their last chance. If Greece comes asking for more money next year or fails to implement programs, time to pull the plug.