In an interview with Portuguese newspaper “Diario Economico,” European Stability Mechanism (ESM) Managing Director Klaus Regling left the possibility open that a discussion on further debt relief for Greece might begin, provided the country continued the reforms and measures agreed with the Troika. Asked about the possibility of a Grexit, Regling noted that the country had traversed a great distance since the start of the crisis in 2009, starting from a very difficult economic and political position, and said he was confident that the country will remain in the euro. He pointed out that the percentage of Greeks that wanted the country to stay in the Eurozone had increased from 70 to 80% in recent weeks. He also noted that the Eurozone had no “exit mechanism” for a member-state and that all rumors about Greece leaving the euro originated from the press and not government statements. The ESM chief underlined that Eurozone governments had not changed their stance and wanted all countries to remain in the euro area. At the same time, however, they wanted the countries that received financial support to improve their economic situation through reforms and fiscal adjustment where necessary, and that this was also the case for Greece. Despite making great progress, Greece “is not at the end of the process,” Regling said, adding that it was in Greece’s interests to complete this process and regain a good growth rate, which the Organization for Economic Cooperation and Development (OECD) has predicted could be the highest in the Euro area if reforms continue. He noted that significant steps to relieve the country’s debt burden have already been taken through extension of loan maturities and low interest rates that helped make Greece’s debt sustainable. “I don’t believe that much needs to be done, beyond this. A lot has already been done but I am certain that, if reforms continue, the Eurogroup will re-examine this,” he said. Stressing that the Troika and Eurozone governments will talk with any government resulting from the Greek elections, he also made it clear that no more loans could be disbursed by the European Financial Stability Facility (EFSF) or the International Monetary Fund (IMF) if the agreed reforms do not continue. “There will be no discussion on additional debt relief, the whole process will have to be stopped and the Greek economy would suffer,” he said. (source: ana-mpa)
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