Greek Debt Deal Close
Published / Last Updated on 29/01/2012
Greek Debt Deal Close.
According to Olli Rehn, the European Union’s Economic Commissioner, Greece could reach a deal with its creditors very shortly.
Greece and its private creditors have failed to agree to reduce the existing debt to help Greece avoid bankruptcy. The main obstacle in the discussions is the interest rate that Greece will pay on newly-issued bonds that will replace its existing debts. The Institute of International Finance wants no less than 4%, while Athens wants the rate to be well below 3.5%.
Agreeing a deal is a precondition of receiving further bailout funds from the European Commission, the European Central Bank and the International Monetary Fund (IMF).