Thursday, April 26, 2018

Relief for Greece? The debt dilemma facing creditors

by Jim Brunsden, Mehreen Khan & Kerin Hope

Financial Times

April 26, 2018

Greece is approaching a momentous moment: the end of eight years of international bailouts that forced the country into unprecedented belt-tightening in exchange for a cash lifeline from eurozone governments and the International Monetary Fund.

But even as the August 20 end date for Greece’s support programme looms into view, Athens knows the next few weeks will be crucial in determining relations with its creditors and the scale of its debt repayments for years, if not decades, to come.

Eurozone finance ministers will gather in Sofia on Friday to press ahead with negotiations that are supposed to deliver a political deal by June on an “exit package” for Greece. It is intended to ensure the country can smoothly return to the sort of normal market financing that most nations enjoy.

But that will require eurozone governments to tackle something they have avoided for years: how much debt relief Athens will be allowed.


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