- Sputnik International
World
Get the latest news from around the world, live coverage, off-beat stories, features and analysis.

IMF Chief Says No Need in 'Haircut' of Greek Debt

© REUTERS / Alkis KonstantinidisPeople make their way next to the headquarters of Bank of Greece in central Athens, Greece, October 30, 2015
People make their way next to the headquarters of Bank of Greece in central Athens, Greece, October 30, 2015 - Sputnik International
Subscribe
The International Monetary Fund (IMF) Managing Director Christine Lagarde said on Friday that there is no need in reduction of the nominal value of Greece's debt or so-called haircut.

BRUSSELS (Sputnik) Earlier in the day, Klaus Regling, the managing director of the European Stability Mechanism (ESM), said that Eurogroup finance ministers rejected to cut the nominal value of Athens' debt.

"I consider that there is no need in 'haircut,' this means that there is no need to change the nominal value of the debt," Lagarde said at a press conference.

A European Union (EU) flag flutters in front of the temple of the Parthenon in Athens, Greece, Saturday, Aug. 15, 2015 - Sputnik International
Reverse Synergy: Grexit and Brexit Together Could be Catastrophic for EU
He added that a thorough analysis of Greece's debt would lead to the mechanism possibly without a "haircut," but with possible re-profiling of the debt.

Greece's international creditors, including the IMF, the European Central Bank and several EU countries, signed an agreement with Athens in August 2015, approving a third bailout package worth about 86 billion euros ($96.9 billion at the current exchange rates) in exchange for highly unpopular austerity reforms such as pension cuts and tax hikes.

The Greek economy has been severely strained for several years due to the country’s multibillion-euro debt, accumulated after the 2008 world financial crisis. The haircut has been repeatedly proposed as a measure to relief Athens' debt burden and to ensure stable debt repayment.

Newsfeed
0
To participate in the discussion
log in or register
loader
Chats
Заголовок открываемого материала