BERLIN (AP) — Germany no longer rules out the possibility of forgiving Greece some of its debt once the country's finances are in order, Chancellor Angela Merkel said, signaling a softening of her government's tough stance on Greece.
Merkel's government had previously ruled out forgiving debt, arguing that Greece must implement the agreed-upon austerity measures and structural reforms in return for its bailout loans.
Merkel's comments came only two days after Germany's parliament voted in favor of granting Greece more lenient terms on its bailout program, clearing a necessary hurdle for disbursing a €44 billion ($57 billion) rescue loan payment in December that Athens needs to avoid bankruptcy.
Merkel's government had previously ruled out forgiving debt, arguing that Greece must implement the agreed-upon austerity measures and structural reforms in return for its bailout loans.
Merkel's comments came only two days after Germany's parliament voted in favor of granting Greece more lenient terms on its bailout program, clearing a necessary hurdle for disbursing a €44 billion ($57 billion) rescue loan payment in December that Athens needs to avoid bankruptcy.
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